Sell 50% of IP to mother - legal issues?

[jezzi]

Hi everyone.

I have an IP in Vic. I am in a situation where my mother is interested in purchasing half of the property. I understand that stamp duty would be payable, but what other fees and charges, legal issues, would there be?

I know there will be the breakout cost to get a new loan, with both of our names on it, is there anything else we should consider?

I have only owned this property in my name for 1 year, previously it was the ppor for my ex and myself for 5 years, in both names. Will CGT be applicable?

Any advice at all would be so helpful!

 

[Peter_Tersteeg]

I'd expect that CGT would be applicable for growth since you moved out, but a savvy accountant may be able to work around this depending on your circumstances.

The lending side would be a bit messy, if your Mum is borrowing money you'd almost certainly have to use the same lender. You may have to cross-guarantee each others loans.