fromthetoon

Hi,
Not sure what my stars say at the moment but this month has been a month of finance!
Anyway, this would be more helpful for my sister and parents than me.
If my parents own a house valued at $500k and live in Melbourne. They want to pay off my sister's mortgage ($200K left) and she lives up in QLD. This would leave them with $300K. However, they want to buy a house which costs $600k, so my sister has offered to buy them this house as she can get a mortgage for $600k.
This didn't make sense to me because I just thought she could just pay the extra $100k for my parents. I also think she may be taxed for receiving $200k, would she? I think she's trying to get out of some kind of taxes?
It all sounds crazy but I thought I'd ask you the professionals.

john in oz

I am a finance broker and this is a bit messy in all of this - is it that you sister is doing a home loan because the parents can not qualify for a home loan ???

If the current house is 500 K and they put 200 K towards her home that leaves 300 K as you stated and a need for a further 300 K plus costs???.

Please Pm me if you wish to go through all of this all.