Example: Selling property to a family member at a discount
Vanessa and Adnan own a home in NSW. They sell it to their son Al for $500,000, knowing that its true value is actually $900,000. Al pays them $500,000 and Vanessa and Adnan get a professional property valuer to look at the property. The valuer puts the property's market value at $900,000.
Al's costs therefore are:
Sale price: $500,000
Stamp duty (calculated on $900,000 for first home buyers): $20,200
Vanessa and Adnan have used the house as their primary residence for more than 10 years. Therefore they won't have to pay CGT.
* This is a fictional, but realistic, example.
I want to contribute substantially to my sons new home by selling mine and move in with him and his family – will i lose my pension
Hi Kathy,
I suggest talking to a financial advisor. Your home is generally exempt from the pension asset test but if you sell it then the cash may push your total asset amount over the threshold.
You can find out more here.
Hi, my Mum and her sister own a property as tenants in common with equal shares.
My Mother has not resided in the property for many years, her sister has.
My Mother is wanting to sell but her sister doesn’t want to. Can she just tell my Mum she has to wait?
Hello Misha,
Under a tenants in common ownership scenario, each owner can sell their share of the property but cannot force the other person to sell their share.
This is a tricky situation and I suggest getting some legal advice from a professional.
I want to gift out house to my grandchildren 2 or maybe 3 but 2 definitely. I’ve got an idea on how to do it but any advice would be happy to have. I have a grandson who as had a fair fk up it life. It’s on 7 acre and I want to done asap. Plz help with any advice. Both are over 18.
Hi Deva,
We are not licenced to provide personal financial advice so unfortunately we can not make any suggestions. However, because you’re dealing with high value assets, you’re best off engaging a lawyer to assist you with managing this transaction.
All the best!
I brought an investment property not quite 12 months ago with a tenant in place. My daughter would like to buy it when she sells her own home. How can I make this a fair transaction between the two of us? What are our options.
Hi Theresa,
There are still fees to pay even when you sell property to a family member, so it’s important that you’re both aware of those. Even if you sell the property at a discounted price, your daughter would need to pay stamp duty on the full market value.
As a comparison site we provide general information in our guides, but we cannot offer any advice on specific situations. You should get in touch with a qualified conveyancer to talk through your options.
Rebecca
Our family home is on a large block of land 6000m2 my two sons are looking to build their first homes on it as well. I’m hoping not to subdivide the block at this stage and add both sons to the title. Im thinking that there would be no stamp duty incurred as they are first home buyers in NSW
Hi Ross,
In these kinds of complicated transactions I suggest talking to a conveyancer first. Even first home buyers can sometimes pay stamp duty, depending on the value of the property.