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Three way purchase with siblings

Discussion in 'Legal Issues' started by MrCarnegie, 5th Apr, 2016.

  1. MrCarnegie

    MrCarnegie Member

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    Hi all,

    We're looking at purchasing a holiday/investment property up north and I wanted to put my feelers out to you guys and see if it's something that anyone has come across. This property has 3 titles (Owner had subdivided the land into three separate blocks and selling altogether). Now we are going to purchase the property and split the cost evenly (Roughly $330K).

    The middle property has a small one bedroom house on it (really nothing special, but livable) we'll be renting that out until we decide to build something on it for our own holiday-ing purposes for the kids in the future.

    Just wanted to know if anyone has any similar experiences or tips going forward? Eg. each title having separate name.

    Cheers
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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  3. Terry_w

    Terry_w Structuring Broker and a Structuring Lawyer Business Member

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    Why not buy 1 title each?
     
  4. York

    York Finance Broker Business Member

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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Wasn't someone else discussing a similar block in North Arm Cove? @See Change
     
  6. MrCarnegie

    MrCarnegie Member

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    12th Jan, 2016
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    Hi Jamie / TerryW, we're thinking of purchasing all three together. The contract shows three separate titles which we'll most likely put one under each of our three names, currently we think that's the best way to go about it.

    Hi York, you're right in assuming that. Since this is more of a family property (for future) we will likely draw a name out of a hat to whoever gets the name of the middle title, although we'll all be collaborating about any future building that occurs if it all goes ahead.

    Hi Scottnonames, That was me. Although the situation has changed slightly and we are still considering the property, although more so getting some background info before we move further.

    Thanks all for the input so far.
     
  7. If a loan is involved this may pose a concern for three lenders but a single loan with a single lender maybe OK. Worth checking.

    There could be some small issues to address for tax purposes with the other two lots....eg If there is no dwelling on the lots either side and NO fences etc it may be 100% deductible where the house tenants have full use of all the land but if the lots are fenced etc and house cant use land then apportioning issues occur.

    A small bit of legal / tax advice would be sensible