If an investment property is transferred to you in a will that was bought after the 19 September 1985, you will inherit the cost base and there are no tax consequences other than Capital Gains Tax when you sell it.
If you inherit an investment property bought before the 19
September 1985, you will be allocated a cost base equal to the market value of
the property at the date of death. You
will pay Capital Gains Tax when the property is sold.
If you inherit a share of an investment property and the
other beneficiaries decide they want to sell, you can apply for finance to buy
out the other beneficiaries, however if you don’t have a 5% deposit in genuine
savings, most banks will decline your loan despite the amount of equity you
have in the property.
Some people may not be ready to take on the responsibility
of an investment property when it is received and may find that they are unable
to qualify for finance.
There are however, specialist lenders in the market that can
assist and always seek financial advice specific to your situation, from an
accountant who is well versed in property investing.
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Sunday, 15 September 2019