IP tennants in common to Join tennants PPOR

[Ninga cat]

Hi everyone

If we purchase an investment property as tennants in common with a split of 99% -1% (99% husband income earner, 1% me no income) and then say in 6months, move into it and it becomes our PPOR, can we change the title to joint tennants without having to pay stamp duty?

Have asked conveyencer and they have replied 'yes' together with application fee and stamp duty on my 1%....but thought I would check in here as seems a bit too easy to me?

Thanks for any replies

 

[Aaron_C]

Why would you want a 99/1 split in the first place?

 

[Terry_w]

Possibly, depending on the State and whether it is a main residence or not. Nominal stamp duty may apply.

You also have to consider that the loan needs to be changed as the security will be changing.

Could be tax issues if not exempt from CGT.

 

[Ninga cat]

Thanks guys, 99 / 1 was for tax implications while it's a rental (the 1 because it's easier if I am on mortgage etc so can operate and make enquiries on bank accounts, rates, property management etc no probs...otherwise each requires operating authority). Just found out costs are around the $1000 to change to joint tennants so have to consider that it might not be worth the hassle if it's only a rental for a short while. Thanks again..

 

[Terry_w]

Thanks guys, 99 / 1 was for tax implications while it's a rental (the 1 because it's easier if I am on mortgage etc so can operate and make enquiries on bank accounts, rates, property management etc no probs...otherwise each requires operating authority). Just found out costs are around the $1000 to change to joint tennants so have to consider that it might not be worth the hassle if it's only a rental for a short while. Thanks again..

Maybe more than this as the lender will charge a discharge of mortgage fee and then the reregistration of mortgage. Maybe an application fee or similar. Stamp duty may be $50. Conveyancing would be a bit too.

 

[Aaron_C]

Thanks guys, 99 / 1 was for tax implications while it's a rental (the 1 because it's easier if I am on mortgage etc so can operate and make enquiries on bank accounts, rates, property management etc no probs...otherwise each requires operating authority). Just found out costs are around the $1000 to change to joint tennants so have to consider that it might not be worth the hassle if it's only a rental for a short while. Thanks again..

Don't forget that with most lenders you can be put as a co-borrower even though you aren't on title since you are a spouse. So there is no issue with authority to deal with the lender.