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Discussion in 'Introductions' started by JeremyC, 30th Jun, 2016.

  1. JeremyC

    JeremyC Member

    Joined:
    30th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    Hi all,

    I've been following some of the posts on PC and I must say they are very helpful with great tips.

    Now having the ability to own my first IP. I'm in need of some of your assistance/advice.

    Me (average income) and partner (not working) is looking to purchase our IP in Melbourne. Our intention with the $400k purchase is to minimise cashflow as much as we can initially and gradually look to paydown and own the property.

    In terms of structure - I'm considering it in my name now to get the gearing benefit and transfer property to partner when debt is paid off to minimise rent/income tax.(exemption on transfer between spouse - has this exemption changed or is this in still applicable?) Or should I consider Tenants in common with a 90/10 split between myself and partner.

    I am cautious about borrowing in my name and wouldn't like to affect future borrowings personally or with partner.

    Interested in your thoughts.

    Nice to meet you all
    Jeremy
     
  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Welcome @JeremyC. Glad you've found the posts here valuable.

    I'm no expert but I was under the impression the transfer concession was only in the case of a breakdown of the relationship.

    You're best to seek professional advice about the ownership stuff.

    In general terms–this is not advice–in regards to affecting future future borrowings, from what you have said, it probably makes the most sense to buy in your own name and be solely on the mortgage. Then, in the future, if your partner returns to work, she may be able to buy independently in her name. Or if servicing is tight, you may be able to buy jointly.
     
  3. JeremyC

    JeremyC Member

    Joined:
    30th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    Thanks Steven, I'm on the same page re. partner borrowing capacity down the track! Interested in other people's comments.

    Here is where i got the info re. transfer of IP between spouse

    Tax Tip 103: Transfers Between Spouses and Stamp Duty in VICTORIA

    Credit to Terry