Valuation costs. You might need to have the property value determined by a certified valuer before transferring or gifting your property. This is so you know how much to report that you have gained or lost when filing your income taxes. Independent valuations cost between $300 and $900 depending on where the property is.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.
My mother purchased a property in Qld for me to live in, and I reside in it.
She wishes to ADD my name to her property title for it.
Do we get a Qld conveyancer to do this with the Titles QLD office?
I have never owned a property before, so am I exempt from stamp duty on my share?
Also, since it’s a private home, not an investment property, are we exempt from CGT?
Thanks.
My mother wants to add my name to hers on the title of a house she bought for me to live in here in Queensland.
What are the steps to do this?
Do we get a Queensland conveyancer to do this with the Titles Office ?
Thanks.
Hi Mark,
You do have to pay a bit of money to use a conveyancer but they can definitely help you navigate this. You may be able to get an exemption on stamp duty and avoid any CGT if your mother has owned the property for more than 12 months and lives in it. But it can be complicated, so it’s worth getting professional help.
Kind regards,
Richard
My husband’s share on our house which is 50% is going to be gifted to our only son. Therefore the ownership will be between me and my son. My son is 37 years old and live with us in the house since birth. This will be his first ownership of a home. The estimate value of 50% is 600,000. Will he be exempted from paying stamp duty? We plan to have it done by a conveyancing lawyer. We know we will have to pay other expenses but only small amount.
Hi Tess,
Transferring the property title to your son may incur stamp duty based on an estimate of how much the property would sell on the market. So 50% of $600,000 would equal stamp duty charged on $300,000.
As a new homeowner, he might qualify for a stamp duty exemption or discount depending on the value of the house and the rules in your state or territory.
It’s good that you have a conveyancer to handle this. They will be able to give you the most accurate assessment of all the costs involved and identify any discounts or exemptions.
I hope this helps.
Kind regards,
Richard
hi, my mother-in-law moved into our home 3 years ago after her husband passed. We’re exploring wether she can buy part or percentage of our house (ie 10% val = $250k). she is 86 and on a pension, but has some good savings from the sale of her last house. what can she do to pay and become part of our property ownership?
Hello Rob,
You would need to add your mother-in-law to the property title. This involves completing a form usually available through your state government’s revenue office website. It might be a good idea to talk to a conveyancer as they can help you understand the full legal details.
Your mother-in-law might also need to pay stamp duty on the portion of the property she will purchase. This is an important cost to consider.
Kind regards,
Richard
My Mother has lived in the family home for over 40 years. Since my Dad passed away, one of my brothers has lived there with her. She is quite independent for her age (87), but it is great peace of mind for me (I live interstate) that he is there should she need him. He has spent quite a lot of his own money on improvements on the home in the last few years. I have 4 other siblings, who don’t do a lot for her – but think they are entitled to their share of her home when she passes. They all have their own homes, so I think it’s only fair that my brother inherits the family home. I recently stumbled across the idea of gifting her home to him, but I am unsure of the costs involved? I believe that he wouldn’t have to pay cgt, but would be up for stamp duty. I this correct?
Hi Jo,
Thank you for explaining the situation. The first thing you need to do is to speak with the homeowner, the person whose name is on the property title since you would not be able to transfer the deed without their approval.
Gifting the property to your brother will incur stamp duty based on an estimate of how much the property would sell on the market.
If your brother has never owned a home before, he might qualify for a stamp duty exemption or discount depending on the value of the house and the rules in your state or territory.
To get an estimate of the costs, you can search for your state or territory government’s stamp duty calculator (Revenue NSW in NSW, or the State Revenue Office in Victoria, for example).
If the property has been your mother’s primary residence, then she won’t have to pay CGT when selling/gifting the property.
Please note this is general information only. It’s a good idea to talk to a conveyancer or solicitor for personal legal advice.
I hope this helps.
Regards,
Richard
I want to gift my house to my daughters but still live in it. It will still have a mortgage left, what will be the cost?
Hi Kelly,
Transferring the property title to your daughter will incur stamp duty. Having a mortgage over the property is not a problem but you’ll need to notify your lender. Since the lender will still be listed on the property title, they will have to approve the mortgage to be transferred to your daughter as well.
Regards,
Richard