QLD Property Investment - Transfer Property Ownership for Renovation?

[winnieb]

Hi

My husband and I live in a property investment owned by my in-laws. It was originally purchased after the introduction of CGT. We pay for the maintenance, rates, etc and my in-laws refer to it as my husband's and my house - they don't intend to rent it again, & they don't wish to do capital improvements on the house. They would essentially like to 'transfer' it to us.

The house is now at a stage where it needs some urgent major maintenance and renovation, which we wish to do. In order to get a loan against the house to finance the work, we need help on the best way to achieve this.

Are the options to transfer the property in full, taking into account CGT implications & transfer fees etc, or set up some sort of tenants in common arrangement, where we take on the loan (& the rest is taken care of in their will?), or are there other options?

I don't even know where to start, what could be the most cost effective option or what type of lawyer to consult. Any help would be appreciated.

Thanks.

 

[Matt King]

If they are happy to transfer it to you prior to any testamentary disposition, it should be a simple matter of transferring it into your names and then applying for the loan.

Alternatively, if they don't want to transfer you could try and secure the loan in your names, with the in-laws agreeing to guarantee the loan using the property as security.