Gifting land ? Or Under market value sale ?

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C3PO

Member
19 January 2022
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0
1
Hi everyone,

The border lockdowns etc has left my industry reeling, and now I find I’m unemployed and in need of government assistance so I applied for an scheme, national rental affordability scheme ( NRAS )
In order to qualify a single person may have upto 120k which I don’t have but no residential vacant land which I do have.
Now I really need this NRAS, as my current lease is not up for renewal and as I’m now on jobseeker allowance I don’t meet a threshold of income to rental ratio without it and thusly am in boarding house territory, this is very alarming.
So my question is with out selling the property to a buyer is there a way I can gift it or sell it with little to no money changing hands as don’t have any.

I do have a 19 yo nephew who can hold it until I can build on it and 2 other nephews who have a trust set up for them ( from an deceased Estate )
I just need to divest myself of my vacant
land in order to find a place to live.
 

Docupedia

Well-Known Member
7 October 2020
378
54
794
I don't have enough information to answer your question fully, and it will also depend on what state you're in, but you'll likely find that the practical problems with your proposal make it unsuitable (for the following reason). I think this principle applies in all states in Australia, but I don't know every state and cannot say for certain. I know it definitely does, for example, in Queensland.

When you transfer property the state government imposes a duty on the transfer - variously called transfer duty or stamp duty. In circumstances where it is being transferred to a related party (i.e. a family member) or for under its arms length value, then two things need to occur:
1. Independent evidence of the value of the property is obtained - such as via a valuation, or in some cases a real estate agent appraisal; and
2. Duty is paid on the assessed value.

Every state has different values, but you'll likely find it to be in the thousands. Given your economic circumstances, I can't imagine that that would be a suitable outcome for you.

Also, bear in mind that a transfer back to you would incur duty again. Making it an all up potentially expensive exercise.
 
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C3PO

Member
19 January 2022
2
0
1
I don't have enough information to answer your question fully, and it will also depend on what state you're in, but you'll likely find that the practical problems with your proposal make it unsuitable (for the following reason). I think this principle applies in all states in Australia, but I don't know every state and cannot say for certain. I know it definitely does, for example, in Queensland.

When you transfer property the state government imposes a duty on the transfer - variously called transfer duty or stamp duty. In circumstances where it is being transferred to a related party (i.e. a family member) or for under its arms length value, then two things need to occur:
1. Independent evidence of the value of the property is obtained - such as via a valuation, or in some cases a real estate agent appraisal; and
2. Duty is paid on the assessed value.

Every state has different values, but you'll likely find it to be in the thousands. Given your economic circumstances, I can't imagine that that would be a suitable outcome for you.

Also, bear in mind that a transfer back to you would incur duty again. Making it an all up potentially expensive exercise.
Thanks so much, I’m in Queensland unfortunately.
I guess I knew the answer you gave but I’d still rather The God of Thunder hit me than have to accept them without asking a knowledgeable person for input.
It will far a greater exercise in expense to sell it and try buying in the same market area also though.
Thanks again Docupedia