How much can you borrow if 'gifted' house deposit

[shopgirl]

The best way to keep the money in the family is to not give it to younger son.

Theres no guarantees in life, things happens, People divorce. Thats the way it goes.


My elder brother has worked out he needs to give our younger brother 150K for a deposit to buy a PPOR and to keep his repayments down to about $350 a week which is the current money younger brother pays in rent.

Elder brother's accountant has suggested he asks the younger brother and his wife to sign a 20 year no interest loan as a safe guard in case the younger brother's wife decides in the future to divorce or separate.

My elder brother's only wish is that the money stays in our family for the benefit of younger brother as it is a large gift.

Would anyone know of another way besides a no interest loan to ensure the money stays in the family?


Thanks
Sheryn[/QUOTE]

 

[wylie]

I think the loan, fully documented, would be the best way to ensure that it is not "lost" to the partner in the case of a divorce.

 

[Sheryn]

I think the loan, fully documented, would be the best way to ensure that it is not "lost" to the partner in the case of a divorce.

Wylie
Thanks - a chunk of money (or property) can be the catalyst in my opinion to a separation so big brother would not like to see that happen as no one really knows how a couple's relationship is.


Cheers
Sheryn