I need some advice...
My husband and I purchased our first IP last year.
I educated myself by reading books, going to seminars and visiting this forum.
When we purchased an IP, our mortgage broker advised to have a property ownership with 99% in my husband's name and 1% in my name. This, of course made sense because he earns close to 100k and I earn 20k and IP is negatively geared.
I recently got in touch with my lawyer and asked where does this arrangement show in our document, he said that the ownership is 50/50. He checked all his note from our meetings but he did not find any record of 99/1 arrangement
I looked at my email correspondence with my lawyer, but can't find any record of this either. I thought that I discussed this with him, but I don't really trust my memory to be honest(especially since having 2 children, my memory loss is significant...
I asked how much it would cost to change this and the reply was:
You are looking at stamp duty on the transfer of the 49% share $5300.00. There may also be some bank fees involved for the consent and production of title deed.
If the ownership was 99/1, the IP would have been costing us $70 per wk. Now it is going to be $100 per wk. (I use PIA software)
Firstly, is there any way to somehow fix this without any significant cost?
and secondly, is it worth changing the ownership considering that we would like to hold this property indefinitely?
I am so very devastated by this mistake...but it is a lesson for us not to make the same mistake again for the next Property investment purchase.
Appreciate any comment.
Thank you
My husband and I purchased our first IP last year.
I educated myself by reading books, going to seminars and visiting this forum.
When we purchased an IP, our mortgage broker advised to have a property ownership with 99% in my husband's name and 1% in my name. This, of course made sense because he earns close to 100k and I earn 20k and IP is negatively geared.
I recently got in touch with my lawyer and asked where does this arrangement show in our document, he said that the ownership is 50/50. He checked all his note from our meetings but he did not find any record of 99/1 arrangement
I looked at my email correspondence with my lawyer, but can't find any record of this either. I thought that I discussed this with him, but I don't really trust my memory to be honest(especially since having 2 children, my memory loss is significant...
I asked how much it would cost to change this and the reply was:
You are looking at stamp duty on the transfer of the 49% share $5300.00. There may also be some bank fees involved for the consent and production of title deed.
If the ownership was 99/1, the IP would have been costing us $70 per wk. Now it is going to be $100 per wk. (I use PIA software)
Firstly, is there any way to somehow fix this without any significant cost?
and secondly, is it worth changing the ownership considering that we would like to hold this property indefinitely?
I am so very devastated by this mistake...but it is a lesson for us not to make the same mistake again for the next Property investment purchase.
Appreciate any comment.
Thank you