Buying Property in Someone else name

[news24]

Hi MyBB,

There is a property that I'm interested in purchasing. Since I'm out of the country I am thinking to have my parents purchase the property for me in their name and when I relocate back to South Africa in a year or two, I could have the property transferred to my name.

What would the tax implications be when I have the property transferred to my name? Do you think if this is wise?

Thanks

 

[Beachless]

Nope.

Hows your cousin doing?

 

[Nerfherder]

Hi MyBB,

There is a property that I'm interested in purchasing. Since I'm out of the country I am thinking to have my parents purchase the property for me in their name and when I relocate back to South Africa in a year or two, I could have the property transferred to my name.

What would the tax implications be when I have the property transferred to my name? Do you think if this is wise?

Thanks

You have to pay full transfer costs. So its the same as if you are purchasing it again.

Probably easier to just have it in your name...

 

[bokka1]

Just buy the property in your own name now, why pay double transfer duties?

Give your parents a power of attorney to sign everything on your behalf.

 

[Colin62]

Register a cc and buy the house in the cc's name? Or a trust?

 

[ice_cubes]

Your parents will also pay capital gains tax on the *deemed disposal/sale. By the time you move back to SA, the property value would have (assuming) increased.

 

[envo]

being out of the country doesn't stop you from buying property here in your own name. foreigners do it all the time

hell, my friend lived in the UK for 15 years and bought 3 properties here in his (and his wife's) name, without having to be here

 

[SYNERGY]

Nope.

Hows your cousin doing?

 

[SauRoNZA]

Your parents will also pay capital gains tax on the *deemed disposal/sale. By the time you move back to SA, the property value would have (assuming) increased.

Isn't that only if the profit being made is more than R1 000 000?

OP just buy it directly. You don't even need to be in country to do it from what I've seen.

 

[bokka1]

Isn't that only if the profit being made is more than R1 000 000?

OP just buy it directly. You don't even need to be in country to do it from what I've seen.

No, you get taxed from the first cent if it is not your primary residence.

 

[bokka1]

Register a cc and buy the house in the cc's name? Or a trust?

You can't register a CC any more.

 

[SYNERGY]

You can't register a CC any more.

There are some off the shelf CC's still floating around. It's a risk thou.

 

[CamiKaze]

What is the advantage of buying a house on a CC or any other company license?
And with a trust?

 

[Colin62]

You can't register a CC any more.

I just learnt something new

What is the advantage of buying a house on a CC or any other company license?
And with a trust?

You can sell the company, not the house, so you don't pay transfer duties. The downside is having to do the books every year.

 

[CamiKaze]

You can sell the company, not the house, so you don't pay transfer duties. The downside is having to do the books every year.

Why are there such a little people that do this?

It's R785 or so to register a new Pty.

 

[The_Ogre]

Why are there such a little people that do this?

It's R785 or so to register a new Pty.

Actually it costs R125 if you do it yourself

 

[IzZzy]

Why are there such a little people that do this?

It's R785 or so to register a new Pty.

Because disposing of the property, if you hold it via a company, means you pay CGT at a higher rate, and you don't have the benefit of transfer duty exemptions.