Advice on joint ownership please
 

I would be most grateful if anyone could offer some advice please on the following:
My parents live in Aus and we currently live in the UK. As my wife and I will be possibly moving without a job to go to, I thought about buying a house with my parents until we managed to find permanent employment. I appreciate how difficult it will be living with parents but I have noticed some very nice houses in Aus with a nice annex (for parents!!) all for $500k which is about our limit.
However, apart from the will, what kind of taxes, benefits or anything else do we need to consider? Oh, my parents are retired, own their house and will be paying about $300k towards the house.
Much appreciate your advice

Re: Advice on joint ownership please
 

I assume they will be selling their existing home, otherwise that could create tax problems for them later.

Other than that, I can't see a problem, but .... check it with an up to date tax specialist... I have a niggling doubt in the back of my mind, but can't work out why...

Re: Advice on joint ownership please
 

If your parents already own a house in Australia and they are named are joint owners, then we won't be able to claim the FHOG.

Re: Advice on joint ownership please
 

Thanks for your replys. My parents will possibly be selling their existing home and buying another with us but I am concerned about the legalities of it all. Eg will I lose the right as a 1st time buyer, would it be wise just to have me and my wife's name on the paper work and if so how will we be affected by taxes etc esp if they both die in the next few years !!

Re: Advice on joint ownership please
 

This could be very complex, and needs better advice than a forum.

Points to consider:
If they die, what is in their will ? Do you then have to sell the house to pay out beneficiaries.

I would look at a legal loan, from them to you, with clauses to state what happens to repayments to their estate, should they both die, so that you do not need to sell the property.

From their point, they need to look at clauses to guarantee them full and immediate repayment should they be kicked out later on.

Hard things need to be looked at, they do happen, although not often.
I will quote an extraordinary case as an example changed to suit your circumstances:

See a legal expert, to get things done right.

Re: Advice on joint ownership please
 

A lot of people help children buy houses and the children have the property in their name and then they give an unregistered mortgage to the parents for the amount of the loan.

Its a very difficult area as has been said because there is no crystal ball. Also if you intend to have a mortgage with a lender how would the parents be protected should things go pearshape.

I am not a fan of mixing finances its probably better they have their money and rent from you that way any other beneficiaries would not force the sale of the house.

I worked in legal for over twenty years and cannot count the number of problems in families that I saw and it can be messy. What seems like a good idea is often not a good idea.

Head to the nearest solicitor and get some good advice before doing anything.

I have seen people do this and then the marriage of one party breaks up and then it becomes a family law property dispute and the property has to be sold.

I know we say this will never happen but who knows.

Re: Advice on joint ownership please
 

Another point to consider is that the parents may need their money if one or both of them need to go into a nursing home then they will need their funds to pay the bond. The nursing home down the road from us the bond is two hundred thousand dollars. Of course most of this is returned to the estate once the person passes away but if they have funds then they are required to pay bonds.

Please make all the inquiries first.

Re: Advice on joint ownership please
 

Great advice and thanks to all who have taken the time to contribute.
However, what would happen if: My parents sold their house and then gave me the money to add with mine in order to buy a house outright - under my name only. Then once I obtained a secure job, bought another house for them under my name again - would I need to pay taxes and would I be expected to pay the 200k nursing bond for my parent (s) if they require it ie it could be said that it was my money!!! In the UK if you have money you pay for a nursing home, if you don't have money then the State pays! A good mate of mine (Ian) lost a huge amount because his father died and his mother failed to place the house in her son's name (Ian). I believe the name needs to be changed for 7 years before it's finalised?

Re: Advice on joint ownership please
 

People do these sorts of things. Here in Aus we are only allowed to gift so much money to our children in a tax year otherwise its taxable.

State does provide places for people who have limited funds in Nursing Homes.

You have not mentioned if you have siblings if you have then you obviously have in laws and once a parent dies often people change considerably where money is concerned.

Here in Aus a Will needs to provide for all siblings if the will doesn't you can be sure it will end up in being contested.

These thoughts provided are just the tip of the ice berg I would go and seek proper advice on ways to set things up.

My relations in NZ have a trust because they have a son who needs some assistance and he lives in a separate house on their land. This works well it may be something to look at. Of course his brothers and sisters agree with this.

Re: Advice on joint ownership please
 

If your parents are on a pension and give their money to you, Centrelink count that money as earning the deeming interest and their pension is affected accordingly for five years.

Also if they give you their money and the property is in your name only, that is a very tenuous situation for your parents if there is any falling out or your marriage breaks down.

Your wife would be able to claim some of the house in any settlement even if she has contributed no funds. Not a comfortable situation for your parents and if it were myself it is an action I would not even contemplate.

Re: Advice on joint ownership please
 

Thanks again to all who have contributed. Your advice has been much welcomed.