Hi Sheryn,
In hindsight, other than going it alone, do you see a way that a duplex build and split between two people can be most effectively in minimising stamp duty, mortgage fees and other issues? I am considering doing a duplex build with my mum on some land we are subdividing up (see separate thread) and would prefer learning from other's mistakes and experiences before I go and make different ones of my own. Mum thinks we should both hold both duplexes so we receive equal income, for example, if one stays unrented for a period of time, but I am concerned about being joint and severally liable with a joint mortgage and the limitations this with put on further borrowing. Ideally, it would be better to have separate loans, but there would be only one property to mortgage unless and until it is strata titled. I also think holding separate halves of the duplex will help avoid other "issues" down the track.
If we applied for separate loans with the same lender, assuming we each separately meet the lending criteria, would the lender accept the same property at security on both loans (e.g. as a first and second mortgage, but each with low 40% LVRs)? Does a loan have to be in the same names as the property that is being mortgaged? What other alternatives are there? Note that the land will probably be subdivided in unit trust structure, but the trust has other beneficiaries than just mum and me (also my brother and sisters). It would be good to avoid three lots of stamp duty (once going into trust, again when mum and I buy land off trust, and again when duplex is strata titled and we get half each). Sorry for having so many questions.
