Ownership Percentage

Hi all,

I've just got a quick question in relation structuring ownership percentage for our next investment property.

I earn 140k while my partner earns 70k. We have a baby due in late Jan thus her income will reduce to maternity pay when the baby is born.

We have been jointly pre-approved for 500k with a big five lender. I've spoken with my tax agent and they have recommended that if the property is likely to be cash flow positive it makes financial sense to put that property in the name of my wife.

My question is will the bank allow us to jointly finance our next IP and put the ownership 100 percent in my wife's name? I didnt consider this when applying for finance jointly so will it to be re apllied for? Would you recommend a different percentage?

If the bank does allow this 100 percent in my wife's name at what stage does this occur and when do I nominate the percentage? Does it occur when we sign the contract? Or when we speak with out conveyancer?

Thanks for your help Andy

 

Cashflow positive? Or positive taxable income?

 

A quick question implies you don't understand the complex issues involved.
- income tax now and future
- cgt
- deductibility of interest
- qualifiying for finance
- asset protection
- family law
- estate planning
- land tax
- stamp duty
- various strategies

 

see
Loan Tip: Co-Borrowers, new requirements Loan Tip: Co-Borrowers, new requirements

 

It's possible - but you might have to provide some additional supporting documents such as a letter from your accountant explaining the rationale behind the sole ownership.

Cheers

Jamie

 

You are correct Terry - I have very little knowledge of that and that's why I'm asking before I go and make a mistake. If you can share books, podcasts etc that cover this off I more then happy to take the time to learn- have to start somewhere

 

have a read of my 242 legal tips first and then start on the tax tips.

Then seek legal advice.

 

Will do thanks !