2 houses on one 10 acre property

Discussion in 'Investment Strategy' started by the enforcer, 18th Oct, 2012.

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  1. the enforcer

    the enforcer New Member

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    We are thinking of buying a 10 acre property in melb sth with 2 houses on it.
    Thinking of giving our kids a leg up in the property market we would live in 1 them in the other $750 000 is total price we have $300 000 deposit wondering what the best way of setting it up is so as not to cause dramas down the track any advise would be welcome Robyn And Steven :)
     
    the enforcer, 18th Oct, 2012
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    What dramas are you wanting to avoid?

    Can the property be subdivided?

    How old are your kids?
     
    Simon Hampel, 18th Oct, 2012
    #2
  3. Terry_w

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

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    Many potential dramas

    - Divorce
    - Death
    - Insolvency
    - CGT (only 2 hectares is exempt)
    - stamp duty
    - loans
    - legal ownership
    - land tax
     
    Terry_w, 19th Oct, 2012
    #3
  4. the enforcer

    the enforcer New Member

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    Hi Sim.
    Property cannot be divided. Son & his partner in mid twenties, both working full time. I think main concerns are relationship break ups & a claim being made for "their" share. The division of mortgage payments. We will be providing the deposit. Death, possible claim from other children from previous relationships. Robyn
     
    the enforcer, 19th Oct, 2012
    #4
  5. the enforcer

    the enforcer New Member

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    Hi Terryw

    Wow lots to take on board. What is CGT? Robyn
     
    the enforcer, 19th Oct, 2012
    #5
  6. Terry_w

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

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    Capital Gains Tax
     
    Terry_w, 19th Oct, 2012
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  7. the enforcer

    the enforcer New Member

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    Sorry, stupid me!!! of course. Robyn
     
    the enforcer, 19th Oct, 2012
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  8. grinners__

    grinners__ Member

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    Would the best option then be to simply rent the property out to them (indefinitely if you wish) as though they have no relationship to you.

    You can charge as little as you want, and there is not question about ownership.

    CGT would only apply to the part of the property rented out (as it is not a Primary Place of Residency) and for the parts over 2 hectares as said above.
     
    grinners__, 2nd Nov, 2012
    #8