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2 houses on one 10 acre property

Discussion in 'Real Estate' started by the enforcer, 18th Oct, 2012.

  1. the enforcer

    the enforcer Member

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    Location:
    melbourne
    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 :)
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    What dramas are you wanting to avoid?

    Can the property be subdivided?

    How old are your kids?
     
  3. Terryw

    Terryw Well-Known Member

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    Location:
    Sydney
    Many potential dramas

    - Divorce
    - Death
    - Insolvency
    - CGT (only 2 hectares is exempt)
    - stamp duty
    - loans
    - legal ownership
    - land tax
     
  4. the enforcer

    the enforcer 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
     
  5. the enforcer

    the enforcer Member

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    Hi Terryw

    Wow lots to take on board. What is CGT? Robyn
     
  6. Terryw

    Terryw Well-Known Member

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    Capital Gains Tax
     
  7. the enforcer

    the enforcer Member

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    Sorry, stupid me!!! of course. Robyn
     
  8. grinners

    grinners Member

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    23rd Feb, 2012
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    Location:
    Melb, Vic
    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.