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Is this possible ?

Discussion in 'Real Estate' started by Grace, 28th Jan, 2010.

  1. Grace

    Grace Member

    Joined:
    30th Dec, 2009
    Posts:
    7
    Location:
    sydney nsw
    Is this possible

    I am considering going tenant in common with adult daughter with a 3 bed home.Her 1/3 me 2/3. She doesn't earn enough to go 100%

    Q.Can i set up my 2/3 as I would a normally a IP {I already have IPs}and received rent from 2 rooms.

    Her 1/3 would be her main residents.

    Q could she get FHOG ?


    I plan to as her income improves or her debt decrease to sell her 1/3 and then 1/3. At the current market price etc. And i pay CGT and stamp etc.

    Q is this possible
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    A: It is possible provided you address the risks of coownership.

    Check out the links below and BEFORE you do anything contact your lender and see if they'll lend you under such an arrangement.

    Note that not all lendes will play ball so if your own bank says no don't give up, there will be 1 which will lend the money but apply for a loan preapproval before you puchase anything.
    It will give you peace of mind plus it will speed up the loan settlement process later.

    Also, you should know that you'll both be liable for the whole loan and not only for your portion so if one of you 2 defaults, the other will have to come to the party and repay the loan.

    FAQs about property co-ownership
    Co-ownership of property - realestate.com.au
    First home benefits - NSW Office of State Revenue
     
  3. Grace

    Grace Member

    Joined:
    30th Dec, 2009
    Posts:
    7
    Location:
    sydney nsw
    Bill thanks,

    I had found these sites that were most useful
     
  4. James_w

    James_w Member

    Joined:
    11th Feb, 2010
    Posts:
    13
    Location:
    mars
    yes it is possible many are buying toegether to buy a property they couldnt afford on there own in a better area.
     
  5. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    Grace,
    There is a lender that offers a loan that suits tenants in common so the obligation is only on your portion, not for the full loan.
    Alternatives are going guarantor for your daughter and there are a number of lenders that offer the family guarantee/pledge for full or part loan.

    I don't specialise in FHOG and it is a little state based rules but a guarantee may be a better way to go to so your daughter can obtain the full FHOG and then you don't run into the issue of CGT, stamp duty etc on subsequent 'sale'. The property is revalued over time and the guarantees released.

    Good luck
    Greg