My mum bought an investment home a decade ago for $80k. Its now worth about $280k.
A family member now wants to buy a house to receive the FHOG.
Can my mum sell the house for $80k or does she have to sell it at market value?
Browse Forums Real Estate Re: Selling to family member 3Jun 06, 2009 2:13 pm We did a similar thing - we had a unit for 6 years as an investment unit and then we sold it to our son early last year. Its value had roughly tripled in that time. He got the FHOG. Softie parents that we are, we agreed to sell it to our son at a discount price (had to get him to leave home somehow ![]() ![]() However they can hardly argue with the govt valuation - these are notoriously low (in SA anyway), we sold it $6000 over official valuation which was still at least 30 - 40 K under market value. Hope this is helpful to you ![]() ![]() Re: Selling to family member 4Jun 06, 2009 6:28 pm The person buying the property must also pay the stamp duty on the market value. OSR will require an independant valuation on the property and the stamp duty on that price is payable. They do this for related parties so you don't sell your property for $1 to avoid stamp duty! Building a Wisdom Homes Impression 33 MkII http://lilypadintheponds.blogspot.com/ We have the keys! Tiling in progress... Re: Selling to family member 6Oct 04, 2009 11:40 pm milky - I can assure you that you will get a holiday with 3 square meals a day ![]() ...and a roof over your head for a while if you did that. ![]() It is possible to sell at 'arms length' but no way to avoid the CGT trigger.(change of ownership) Someone will pay the due tax. Where you are coming from is where you are going to... Re: Selling to family member 7Oct 05, 2009 12:51 pm But if your relative is a 1st home buyer, then they wont have to pay stamp duty anyways....so it shouldnt matter how low you sell it to your relative....no? Just curious, what if the property in question was owner occupied, and not an investment? The OSR cant dicate how much you're selling it for right as there are no tax implications here? 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: Selling to family member 8Oct 05, 2009 1:04 pm you only pay capital gains tax on investment properties, not on your residential home, so I guess Allana is right - if you were to move out of your own home and sell it to a relative, it shouldnt matter what the price is - if they are a first home buyer not paying stamp duty and you wont be paying CGT. ![]() I guess milky is also right - you could sell an investment home for roughly market value, pay CGT as required and then give the remaining profit to the relative as a gift. We certainly didnt do that - we wanted the rest of the money ourselves ![]() ![]() ![]() ![]() Re: Selling to family member 9Oct 12, 2009 5:48 pm ![]() you only pay capital gains tax on investment properties, not on your residential home, so I guess Allana is right - if you were to move out of your own home and sell it to a relative, it shouldnt matter what the price is - if they are a first home buyer not paying stamp duty and you wont be paying CGT. ![]() I guess milky is also right - you could sell an investment home for roughly market value, pay CGT as required and then give the remaining profit to the relative as a gift. We certainly didnt do that - we wanted the rest of the money ourselves ![]() ![]() ![]() That's what I was thinking. After the deal is all done and dusted, there's no reason why you couldn't give a present to a family member, if you so wished haha ![]() Re: Selling to family member 10Oct 12, 2009 5:58 pm Are we still taking about the investment property mum bought a decade ago? If so then you could read this from the ATO http://www.ato.gov.au/individuals/conte ... /63460.htm Where you are coming from is where you are going to... Hi everyone, Newbie renovator here, after some advice for combining our family room in the picture and the alfresco and make a larger family room. There is a flush sill… 0 6111 |