What about this?



From: Chris Legg

People on low income want money for overseas
trip.Friendly investor discovers they have unemcumbered property and suggests that he buys 10% of their property. They dont want to make repayments until sometime in the future when the property is sold so friendly investor says OK capitalise the interest and repay when property is sold.
Owners gain money they cant get from traditional finance Investor gets capital gain on 10% of property.

What would be the best way to set this up?

Would investor get tax deduction on interest paid during the time until the property is sold.

Investor would have to pay CGT when property sold.

Owners are somewhat older than investor hence likely to sell property due to ill health etc within next 20 years.

Comments please

Lifes a beach at Caves
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Reply: 1
From: Michael G


Have a look for a book called Sell & Stay.

Michael G.
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Reply: 2
From: See Change


I remember a case in France where a solicitor agreed to pay a set annual amount to a elderly person , in return for reclaiming the amount ( or whole house , can't remember fine details ) out of the persons estate.

Needless to say the "elderly" person lived past 100 , well out living the solicitor, who's descendants where required to keep on paying.

Don't think it has any relevance to your question, but I thought it was an interesting / amusing anecdote

see change
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Reply: 1.1
From: Nigel W

I heard about that too!

The old girl kicked on just to stick it to the lawyer!!!
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