How Do I Transfer The House Over To The Children?
There are a lot of reasons why a parent might transfer the ownership of a property to their child. Perhaps it’s an investment property that you want to gift rather than sell, perhaps you want to give your child a helping hand into the property market, or perhaps you’re moving or downsizing and you want to pass it along.
Whatever your reason, it’s a great thing to do. It can really help people in the property market, and it means that you get to see them enjoying it rather than just leaving it to them in your will.
To be able to transfer property ownership you need to enlist the help of a conveyancer who can handle all the legalities for you.
Put simply when you transfer the ownership the house will need to be valued. Once the current market value of the property has been ascertained then the costings can be calculated. While your family might not be “buying” the house from you legally it is treated in much the same way, so Capital Gains Tax (CGT) and Stamp Duty still apply.
CGT and Stamp Duty are calculated based on the market value of the property as opposed to what you paid for it (or what you’re selling it to them for if you’re selling it to your friends or family below market value). So make sure you’re aware of this.
If you want to find out more then talk to one of our conveyancers and they’ll be able to help you.