Ask Melanie | Saving stamp duty means leaving home
Melanie Nutbeam, a certified financial planner based in Hong Kong, addresses common personal finance queries. Send your questions to [email protected]
No, even a half-share in a residential property makes you a home owner, and prey to higher stamp duties for second-home buyers. But as a permanent resident, you will be exempt from the 15 per cent buyer's stamp duty.
If you want to halve the stamp duty on a new flat, you need to give up your interest in the family home.
Your wife might, for example, receive your half share of the home in return for giving up her interest in compensating assets.
The transfer of your half share can be by a "deed of gift" in which you legally transfer ownership for no money and this attracts minimal stamp duty. Make sure you carefully document this.
Stacey Devoy, a lawyer at Withers, says a fail-safe alternative is obtaining a court order as part of your matrimonial settlement so the property transfers with clean title. If there is a mortgage on the property, you will also need the consent of your bank to any ownership changes. There may be some bank costs in making these changes.