My child is a miner, but I want to rent out the house and move elsewhere without selling it. So I am wanting to put it into my childs name as an investment for her, and then move interstate and rent another house, is this possible?
2007-03-16 16:54:07 · 6 answers · asked by tinytazzie25 2 in Business & Finance ➔ Renting & Real Estate
I know that you cannot put the property in the name of a minor, unless it is own outright. The bank holds the deed in the name of the person paying the mortgage, and your daughter is hardly likely to accepted for a mortgage.
The only thing I can think of is putting it in trust. I am not sure how you would go about this, but there could be some capital gains issues, as it would be considered as a gift. Plus stamp duty, because ownership would be passing from one person or entity to another.
But really speak to someone like an accountant or a property lawyer as there may be ways around forking out money to the government.
2007-03-16 17:02:44 · answer #1 · answered by Sarcasma 5 · 0⤊ 0⤋
I am pretty sure that a minor cannot hold property unless they are the beneficiary of a trust that holds the property.
Now, if you want to transfer the property into a trust, you need the consent of the bank that provides the mortgage (because you are actually giving the house to the trust and the bank will need to sign the papers for that) and I am tipping that, unless you have a superb income and loads of other assets, you will get a big fat NO from them. They need you and your income to feed the mortgage.
Also, even if you just ask them and they say no, they are going to realise that you are not going to live in your house anymore and will probably jack up your interest rate to the investment property rate and insist on full insurance. Both will mean an increase in your expenditure!!
If you are only concerned about securing your child's future, make a really good will giving them everything.
You do need good tax advice though!!! Ask your friends/work mates/neighbours if anyone knows a good tax accountant.
2007-03-16 19:39:46 · answer #2 · answered by fee_beee 2 · 0⤊ 0⤋
although i do not broker in australia, but in the usa, i'd think that a minor child cannot be placed onto a mortgage. now then, you MAY be able to put her onto title, such as a joint tenant. that would mean that the title to the house would automatically pass to her without probate upon your death.
i do not think it is legal in any first-world country for a minor child to "buy" real estate, which would be the scenario you are describing. you say you want to make an investment out of your house for her.
so do you mean, then, that your minor child would collect rents and pay bills? as far as i know, here, that is against the law. even if you wanted her to act, here, as your real estate agent, she must be of majority to obtain a license.
why don't you simply rent out the house YOURSELF? then move and rent a different house? then you'd have the investment house, the one you live in now, as a tax writeoff, with depreciation, depending on how your country handles its taxes and real estate relating to them.
get advice from an experienced real estate attorney, your estate planner (hire a good one), and possibly call the licensing division of the state of australia where the house is, to see what the law says about your proposition. maybe a real estate agent would know, but i do not think so.
2007-03-16 17:08:35 · answer #3 · answered by Louiegirl_Chicago 5 · 0⤊ 0⤋
some banks ought to conform to a quick sale, a sale for much less that the quantity owed, in settlement for the completed debt. yet that has damaging implications on your credit. additionally banks in all probability won't conform to it once you're modern on your fee. What your offering could be frustrating to tug off. you may make an settlement with the broker of the recent domicile to offer you a reimbursement at remaining, by inflating the acquisition fee, so as which you would be able to pay off the different domicile. however the subject with it is the recent domicile in all probability won't appraise intense adequate to permit you to take the money out, noticeably once you're deep underwater on the 1st domicile.
2016-10-02 06:28:27 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You should consult an attorney about this.
2007-03-16 16:56:57 · answer #5 · answered by babeebluez73 3 · 0⤊ 0⤋
I don't think so. They have to legally be an adult.
2007-03-16 16:56:26 · answer #6 · answered by Misty Eyes 6 · 0⤊ 0⤋