Almost 2 years ago my husbands NZ parents decided to build a house more suited to their age requirements. It is a small 2 bed house on a reasonable sized block and would only suit a certain market. Ideal for a retirement couple but in a large estate suited to young families.
They approached us and asked for help funding the build while they lived in their other home. We transferred approx 270k and paid a solicitor to set it up as a loan so they would not be hit for income tax as apparently this is what would have happened. We also lost several thousand in the awful exchange rate at the time.
When they paid it back we decided not to transfer the funds again as the rate was still awful so bought 2 good blocks side by side in the same estate in both our names. We have been asked a couple of times by large house and land builders to sell to them. These blocks are now worth approx 300k, bought for 250k so covered the exchange loss, plus a bit.
His parents have now asked if we would buy their house outright from them so they can live off the funds.
How do we go about this so that the transaction doesn't end up costing us a packet again? (His folks didn't consider the currency exchange so I doubt they will consider cap. Gains, stamp duty, legals etc either which we would have to declare here) I have no idea if these all apply either as I am not familiar with NZ rules and how they affect us here! It would be great to find an efficient way to do this, especially as one of the reasons is that they have run short due to helping out his sibling on a regular basis, so we do want to help them.
They approached us and asked for help funding the build while they lived in their other home. We transferred approx 270k and paid a solicitor to set it up as a loan so they would not be hit for income tax as apparently this is what would have happened. We also lost several thousand in the awful exchange rate at the time.
When they paid it back we decided not to transfer the funds again as the rate was still awful so bought 2 good blocks side by side in the same estate in both our names. We have been asked a couple of times by large house and land builders to sell to them. These blocks are now worth approx 300k, bought for 250k so covered the exchange loss, plus a bit.
His parents have now asked if we would buy their house outright from them so they can live off the funds.
How do we go about this so that the transaction doesn't end up costing us a packet again? (His folks didn't consider the currency exchange so I doubt they will consider cap. Gains, stamp duty, legals etc either which we would have to declare here) I have no idea if these all apply either as I am not familiar with NZ rules and how they affect us here! It would be great to find an efficient way to do this, especially as one of the reasons is that they have run short due to helping out his sibling on a regular basis, so we do want to help them.