Buying a house from a relative

[atti]

has anyone bought a house from a relative ?
how can we reduce cost for bothsides ?
any other suggestions would be kool.

i hate mixing business with family and friends but my aunty is thinking of relocating and posiblely wanting to sell her 6 year old house which i really want
hence reason why i want to sell my house atm.

 

[Propertunity]

has anyone bought a house from a relative ?

nope but other family members have

how can we reduce cost for bothsides ?

don't hire a REA to handle the sale.

any other suggestions would be kool.

Do it at market value & maybe less REA commish

 

[atti]

is there a system setup to pay directly to ya relative instead of the banks, ?

lol@obvious not hiring REA so the process only require conveyancer ? if i sell my house would i be able to refiance my current loan to the new property or do i have to take a whole new loan ? dont really need to borrow more moneyz

 

[barry2104]

ok i dont know a lot about RE but am interested in getting into it, so i'll give you an example of how i think you might be able to "cheat the system" and then i'll leave it up to you out there to shoot it down
Say your relative's place is WORTH $500,000, i.e. she's keen on getting paid that much for it. if you had a deposit of say $100k, could you transfer that to her bank directly now, then get a 100% loan on a $400,000 property purchase? i.e. she makes it look like she's selling it to you for $400,000 so would pay less tax come EOFY, but she still gets her desired $500k sale.
could this also work especially well if the property is worth/asking between $500k and $600k, so that if you reduced that amount by $100k (your deposit), then you are exempt from paying STAMP DUTY on the property (in Qld at least... or is that just for FHB's?)

fire at will

 

[man of action!]

Danger Will Robinson, Danger

A word of caution.

Doing deals and business with family members is fine until somebody gets a "bee in their bonnet" and starts hassling you about ripping off Grandma.

Make sure everything is above board and fully transparent.

Make sure everything is properly documented.

Don't do anything that may give them ammunition now or some time in the future.

This way if they do start making rumblings you can show them the entire transaction and (hopefully) get them out of your life quick smart.

Sure it might mean you pay a bit more here or there but in the long run, "what price peace of mind"?

This comes from one who knows the joys of a having "hostile family member" scratching away unsuccessfully for 10 years!!

 

[Raddles]

Hi there
we did buy a property from a family member and had valuations to back up the purchase price - so there was no issue when it came to stamping the transfer.
We did the conveyancing etc between ourselves and just paid out the family members bank.
As for selling your current property and moving the loan arrangements - could be possible - you just need to see if your existing loan is portable. There would be some extra costs of registering mortgages over the new property - but should all be doable.
thanks

 

[atti]

cheers guys i wont be able to afford my aunty's property anywayz she wqants way too much for it... goodluck to her anywayz if she gets what she wants...

so blood is thicker then water but not as thick as CASH!!! lol

 

[Propertunity]

ok i dont know a lot about RE but am interested in getting into it, so i'll give you an example of how i think you might be able to "cheat the system" and then i'll leave it up to you out there to shoot it down

Consider your idea shot down or in monoply terms go directly to jail do not pass go.

Say your relative's place is WORTH $500,000, i.e. she's keen on getting paid that much for it. if you had a deposit of say $100k, could you transfer that to her bank directly now, then get a 100% loan on a $400,000 property purchase? i.e. she makes it look like she's selling it to you for $400,000 so would pay less tax come EOFY, but she still gets her desired $500k sale.

OK, so far we have committed financial fraud and tax fraud....

could this also work especially well if the property is worth/asking between $500k and $600k, so that if you reduced that amount by $100k (your deposit), then you are exempt from paying STAMP DUTY on the property (in Qld at least... or is that just for FHB's?)
fire at will

and now we are up to defrauding the state govt.

On top of all that, IF you got away with it, you can only claim interest on a $400K loan so you are defrauding yourself.

I trust your next posts on this forum are more worthy of you?

 

[auror]

My workmates' solicitor tried to get the vendors' solicitor to do this - vendors' solicitor sensibly refused. I was aghast at my workmate for trying to get around the stamp duty like this. He bought a property for $520k and in NSW, already had quite a bit of stamp duty exemption due to being a FHB... Couldn't believe he was willing to commit potential fraud over a few thousand dollars...