Hello everyone, I have a slight problem with stamp duty that someone may be able to clear up for me. I am part beneficiary with my sister in the old family home in Ormond, Vic. (Our mother passed away in October). My sister wants to sell the property now that probate has come through. We have yet to change the title.
I would like to buy her half out for half the current market value, but it seems by doing this it would attract stamp duty to be payable on half the value of the property. This being around the $20,000.00 mark. Ouchhh.
A solicitor I spoke to suggested there would be no stamp duty payable if the property went straight from my mother's name into mine, but it would be payable if it was transferred into both the beneficiaries names, and then into mine.
That sounded OK, but then I rang the State Revenue Dept, and they told me it was payable either way.
Just wondering if anyone has had any first hand experience with this type of situation?
Just a little side note that some may like to comment on: There's no way I can really afford to buy my sister out. I was retrenched recently and my partner isn't working at the moment either.
After a few phone calls to brokers, it seems I can easily borrow 60% LVR on a low docs. This will allow me to pay my sister out and give me around $90,000.00 left in the LOC. I hope to use some of this to restump and renovate the kitchen. The balance I would need to cover the short fall in the rental for a few years. Rent return currently would be around 2%. The place is somewhat run down.
I would like to buy her half out for half the current market value, but it seems by doing this it would attract stamp duty to be payable on half the value of the property. This being around the $20,000.00 mark. Ouchhh.
A solicitor I spoke to suggested there would be no stamp duty payable if the property went straight from my mother's name into mine, but it would be payable if it was transferred into both the beneficiaries names, and then into mine.
That sounded OK, but then I rang the State Revenue Dept, and they told me it was payable either way.
Just wondering if anyone has had any first hand experience with this type of situation?
Just a little side note that some may like to comment on: There's no way I can really afford to buy my sister out. I was retrenched recently and my partner isn't working at the moment either.
After a few phone calls to brokers, it seems I can easily borrow 60% LVR on a low docs. This will allow me to pay my sister out and give me around $90,000.00 left in the LOC. I hope to use some of this to restump and renovate the kitchen. The balance I would need to cover the short fall in the rental for a few years. Rent return currently would be around 2%. The place is somewhat run down.