QLD Does Temporarily Swapping Houses Affect Principal Place of Residence Rules?

[Vicki Evans]

A friend in her late 70's has been made an offer by her son. He has sold his house and plans to rent for another year. In a few months, he will start looking for a property in town to buy. It must suit his mother as he proposes she lives in his new property while he moves to her house on 20 acres. He will live there with his son and will gradually fix the house up for her to sell one day while his mother experiences the transition of living in town. There will be no change of ownership of the 2 properties.

Any risks under property law? Can he claim any ownership over time? How can the mother ensure she is protected? (Son must keep a register of materials/labour for work done on his mother’s house. Mother wants to pay for materials, but what about his labour?)

Do they keep their mailing addresses the same? Does this affect principal place of residence rules?

Thanks.

 

[Tim W]

If your gut is telling you that this is a bollocks deal for your elderly friend,
it's a good guide.

 

[Rod]

There are potential issues with CGT. Properties over 2 hectares have special rules. Recommend she gets some proper advice before making any moves.