so just wonder what the member think of this.
A friend wants to assist his daughter to purchase a property worth $500000.00.
Land value approxiamately $200000.00
A friend current land value on his current equity, for the land tax purpose is just exactly $400000.00.
To borrow money the Equity will not be an issue, cause this friend has plenty.
Servicibility is an issue cause daughter's income is very low.
gross $45000.00/annum.
What do you think my suggestion below:
Friend become a guarantor to the property as well as become a part owner with 1% interest in it.
That way home loan can be approved cause there are two income to service the loan.
Land tax will not be an issue to this friend cause the 1% ownership will not make this friend liable to land tax cause the way i see it that land value for the propose house is
$200000 X 1%=$2000.00.
My calculation is that the land value for land tax purpose is
$400000.00 + $2000= so total land value to this friend will be $402000.00
Can the member confirm whether or not this calculation is correct?
Is there other tax implication that has not been considered on this scenario?
t
A friend wants to assist his daughter to purchase a property worth $500000.00.
Land value approxiamately $200000.00
A friend current land value on his current equity, for the land tax purpose is just exactly $400000.00.
To borrow money the Equity will not be an issue, cause this friend has plenty.
Servicibility is an issue cause daughter's income is very low.
gross $45000.00/annum.
What do you think my suggestion below:
Friend become a guarantor to the property as well as become a part owner with 1% interest in it.
That way home loan can be approved cause there are two income to service the loan.
Land tax will not be an issue to this friend cause the 1% ownership will not make this friend liable to land tax cause the way i see it that land value for the propose house is
$200000 X 1%=$2000.00.
My calculation is that the land value for land tax purpose is
$400000.00 + $2000= so total land value to this friend will be $402000.00
Can the member confirm whether or not this calculation is correct?
Is there other tax implication that has not been considered on this scenario?
t