Home Purchasing / Transfer

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zizo911

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Good Day fellow Forumites.

I have the following situation, I currently reside with my mother, with whom the current property is registered in her name. She lost her job in 2016, in which I then deposited money into her account so that the bond may be debited from it. The bond is in her name.

I would like to transfer the house over to me, so that it may deducted from me, since I receive a government housing allowance, currently I do not receive it since I am not a home owner.

What would be the best solution?
Sell the house to me at the current market value and have the bond paid off from her, or shall I rather have the bond transferred to my name as well as the property, if this can even be done.

TIA

Zizo911
 
zizo911 said:
Good Day fellow Forumites.

I have the following situation, I currently reside with my mother, with whom the current property is registered in her name. She lost her job in 2016, in which I then deposited money into her account so that the bond may be debited from it. The bond is in her name.

I would like to transfer the house over to me, so that it may deducted from me, since I receive a government housing allowance, currently I do not receive it since I am not a home owner.

What would be the best solution?
Sell the house to me at the current market value and have the bond paid off from her, or shall I rather have the bond transferred to my name as well as the property, if this can even be done.

TIA

Zizo911
Click to expand...

You will need to get the house sold to you at a value that everyone is comfortable with and pay all the fees and taxes applicable and register a new bond in your name.
 
zizo911 said:
Good Day fellow Forumites.

I have the following situation, I currently reside with my mother, with whom the current property is registered in her name. She lost her job in 2016, in which I then deposited money into her account so that the bond may be debited from it. The bond is in her name.

I would like to transfer the house over to me, so that it may deducted from me, since I receive a government housing allowance, currently I do not receive it since I am not a home owner.

What would be the best solution?
Sell the house to me at the current market value and have the bond paid off from her, or shall I rather have the bond transferred to my name as well as the property, if this can even be done.

TIA

Zizo911
Click to expand...

She sells the house and you buy it.
 
Of course the less she sells it for "on paper" the less the fees are.

So there might be some room for selling it cheap as chips to you...and then paying her on the side outside of the bond.

Would probably be best to have the bond line up almost perfectly with the allowance amount so you can get the full benefit of that. Then you can pay any additional stuff "off bond" to her.

All really depends on the arrangement you make with her and whether she wants a lump sum (if at all) for the property or a monthly stipend.
 
Brings up an interesting point.. what’s stops anyone from selling any object for R1 instead of true value?
 
You'd have to pay 20% of the value over 100 000 to sars as a gift tax
 
Well, you also get a rental allowance from government, so apply for that and save yourself the transfer costs.
 
Thank you guys. Best option is to sell it to me then. She will still be living in the house and she said she doesn't need any money from the bond. Ideally I'd like to take a bit more and then use it for renovations on the house. What would be the next step?
 
YingYang said:
Source? Wouldn't that be seen as discriminatory against tenants?
Click to expand...

http://www.gehs.gov.za/?p=Scope%20of%20the%20GEHS%20Services&q=Housing%20Allowance

In a sense it is, but they do keep it in a savings account until you purchase a home.
 
zizo911 said:
http://www.gehs.gov.za/?p=Scope%20of%20the%20GEHS%20Services&q=Housing%20Allowance

In a sense it is, but they do keep it in a savings account until you purchase a home.
Click to expand...
Ah OK. Doesn't quite make sense though
 
Speedster said:
You can sell it for R1, but SARS will still tax you on market value.
Click to expand...
How would they do that? The market value is determined by the sale price.

R1 would be a bit crazy but I don't see how they could tax your for any more than the last evaluation on the property from municipality. Which is usually way below market value.

In the case of a bond the bank would do their due diligence and have something to say I'm sure.

Besides the fact that SARS doesn't tax the seller, but rather the buyer.
 
Fair market value is not determined by the sale price.

SARS will only know if you declare it ok your tax return. The difference between FMV and sale price would be treated as a donation by the seller. The seller(donor) pays donation at 20% on total donations made over R100k for the tax year.

On mobile so just a brief explanation.
 
signates said:
Fair market value is not determined by the sale price.

SARS will only know if you declare it ok your tax return. The difference between FMV and sale price would be treated as a donation by the seller. The seller(donor) pays donation at 20% on total donations made over R100k for the tax year.

On mobile so just a brief explanation.
Click to expand...
Then I was correct in my original understanding.
 
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