Three way purchase with siblings

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

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  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
     
    MrCarnegie, 5th Apr, 2016
    #1
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Are you looking to purchase one each? or all three together?

    Cheers

    Jamie
     
    Jamie Moore, 5th Apr, 2016
    #2
  3. Terry_w

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

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    Why not buy 1 title each?
     
    Terry_w, 5th Apr, 2016
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  4. Phantom

    Phantom Well-Known Member

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    I'm guessing there will be an issue with who gets the middle block with house right?
     
    Phantom, 5th Apr, 2016
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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
     
    Scott No Mates, 5th Apr, 2016
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  6. MrCarnegie

    MrCarnegie Member

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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.
     
    MrCarnegie, 5th Apr, 2016
    #6
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    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
     
    Paul@PAS, 5th Apr, 2016
    #7