Pension and Selling a IP

Discussion in 'The Buying & Selling Process' started by newbie70, 15th Jul, 2018.

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  1. newbie70

    newbie70 Active Member

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    Hi, scenario.
    Aged pensioner, PPOR and Investmemt property.

    Can i sell my investment property to a relative without getting a valuation prior? Is it a legal requirement?


    Thanks.
     
    newbie70, 15th Jul, 2018
    #1
  2. Trainee

    Trainee Well-Known Member

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    You can sell it for one dollar if you wanted to. Tax office, centrelink and osr will have their own opinions.

    Your not asking the right questions.
     
    Trainee, 15th Jul, 2018
    #2
  3. newbie70

    newbie70 Active Member

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    Ok, if i sell it.
    Obviously Centrelink will need to know how much i sold it for, if it is under market value, am i legally required to get a valuation prior or will they get it from the last valuer generals review and determine i have received that amount?

    As for the ATO, i assume at tax time they would do the same?
     
    newbie70, 15th Jul, 2018
    #3
  4. Marg4000

    Marg4000 Well-Known Member

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    Fair market value will be used to calculate stamp duty, capital gains tax and Centrelink assets and income tests.

    To be safe, it would be wise to get the property professionally valued to avoid future arguments. This way there will be no nasty surprises and you can calculate costs involved. What price you actually sell to your relative for is unaffected.
    Marg
     
    Marg4000, 15th Jul, 2018
    #4
    housechopper2 likes this.
  5. hobartchic

    hobartchic Well-Known Member

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    Get some professional tax and financial and legal advice.
     
    hobartchic, 15th Jul, 2018
    #5
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Anything less than market value may be seen as gifting your assets for pension purposes.

    VG is for ratings purposes & land tax not for sales.
     
    Scott No Mates, 15th Jul, 2018
    #6
  7. wylie

    wylie Moderator Staff Member

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    Also, won't the house be deemed as yours for a number of years, which would affect the pension. There are many things you need to look at before doing anything. Get proper advice.
     
    wylie, 15th Jul, 2018
    #7
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No legal requirement to get a valuation done by you but perhaps purchaser may need one for NSW stamp duty purposes.
     
    Terry_w, 15th Jul, 2018
    #8