VIC - Purchasing % of Parents Property under Tenants in Common

Hi

My de facto partner and I are considering purchasing 85% of my parents property under a tenants in common arrangement. The final breakdown would be:
Parents 15%
Partner 30%
Myself 55%

If the property is valued at $1.1M, will we each individually pay stamp duty on our portion (i.e. $605,000 for myself and $330,000 for my partner), or will the stamp duty be assessed on the 85% (i.e. $935,000)?

Am I right to understand there would be no additional fees on my parents remaining 15% given they already own it?

If my de facto partner and I wanted to change our ownership % distribution in the future, am I correct that it would not incur Stamp Duty?

Thank you

 

What is the purpose, and will you be taking a loan out for this? Impact on parents pension? Estate planning?

 

Why would you want to do such a thing?

They won't pay stamp duty if they are the transferee.
CGT needs to be considered.

No.

 

It's an investment property that my parents are keen to sell and we're looking to purchase as PPOR, however 100% is out of reach and not comfortable with a 'gifting' arrangement. ~$1.1M is approx market value and the added benefit is saving on agents fees + getting it 'auction ready'.

The % split between my partner and I is a personal choice to recognise how much we're contributing. While we're de facto, we aren't yet engaged/married and don't have children.

 

Do my comments re. PPOR (missing from original post) change anything? I was basing my understanding on the PPR exemption here: Spouse and partner exemption | State Revenue Office (sro.vic.gov.au)

 

Avoidance of the 2-3% sales commission, plus advertising costs, plus minor works and maintenance that people normally undertake before selling a property.

 

In that case it is likely to trigger CGT for them.

The exemption only applies in limited circumstances such as where 2 spouses gift between themselves and end up as joint owners, (and more)

 

Personal opinion only. You are tying your parents into all of your financial and relationship problems, for little benefit to them.

another way might be let your parents sell the thing, and you buy a ppor you can afford? Even if they lend you an additional 250k, would be better than this co owning thing.

 

The only personal opinions I'm interested in are those of my parents and partner.

 

how will you fund it?

 

Appreciate the responses.

CGT event understood.

Re. the exemption - that's effectively the scenario I have in mind. In future, when kids/marriage are in the situation, the intent would be to buy-out the parents at the then market rate and effectively 'gift' the difference to my partner for 50/50 joint ownership.

Are you able to share how the stamp duty scenario in OP would play out?

 

It could be exempt if done right

 

Loan + 20% deposit to avoid LMI.

 

With your parents being a part owner they will need to go on the loan as borrowers or be guarantors (unlikely)