Inheriting a property is rarely straightforward. Alongside the grief or complexity that often accompanies it, there's a practical question that can't wait forever: what do you do with the property now?
There's no universal right answer. The best path depends on the property's condition, your financial position, how many people are inheriting it, and what each of you needs.
The Probate Process — A Brief Overview
Before you can sell, rent, or transfer an inherited property, the estate usually needs to go through probate — the legal process that confirms the will and authorises the executor to act. In Queensland, probate applications go through the Supreme Court. Timeframes vary, but it typically takes 4–12 weeks from application to grant, depending on complexity.
This is not a step to take without professional guidance. A solicitor experienced in estate matters will ensure the process is handled correctly and avoid delays that could cost you time and money. Do not sign anything related to the property until you have legal advice.
Your Three Main Options
Once probate is granted and you have authority to act, you have three broad choices:
- Sell the property — realise the capital now, distribute proceeds, move on
- Rent it out and earn income — hold the asset, generate cash flow, decide later
- Transfer ownership — to a beneficiary, into a trust, or to another structure
Each option has different tax implications, different cash flow profiles, and different levels of complexity.
The CGT Picture
Capital gains tax is one of the most important factors in this decision. Here's the short version:
- If you sell: you may trigger a CGT event. The cost base is typically the market value of the property at the date of death (for properties acquired post-September 1985). If you sell quickly, the 50% CGT discount for assets held 12+ months may not apply.
- If you hold and rent: no CGT is triggered. You'll pay income tax on rental income, but the capital gain is deferred until you eventually sell.
- If you transfer to another beneficiary: CGT rules are complex and depend on the relationship and circumstances. Get specific advice.
This is general information only — your specific situation will depend on factors including the original purchase date, the deceased's tax position, and your marginal rate. Speak to your accountant before making any decision.
If the Property Needs Work Before Selling
Many inherited properties haven't been updated in years. If yours needs work before it could achieve a strong market price, you have three paths:
- Sell as-is: price it to reflect the condition. Buyers factor in the cost and effort of doing the work themselves — so you accept a lower price, but avoid the hassle and upfront cost.
- Do the work yourself: invest time and capital into bringing the property up to standard before selling. Higher gross price, but higher risk, cost, and time.
- Use a joint venture partnership: Eleva funds and manages the preparation work — you pay nothing upfront. The property sells at a higher price, and you share in the uplift above an agreed floor.
Eleva can fund the preparation work on an inherited property — you pay nothing until settlement.
See how the partnership model works →When Speed Matters More Than Maximising Price
Sometimes the priority is a clean, fast exit — particularly if there are multiple beneficiaries who need to divide assets, or if the estate has debts that need to be settled. In that case, Eleva's direct acquisition model may suit you better: we buy the property directly, no agent campaign, no open homes, and we can move quickly. The trade-off is a lower gross price — but when you factor in the cost of a full campaign, the net difference is often smaller than expected.
Before You Decide Anything — Get Advice
The two professionals you need before making any decision on an inherited property are a solicitor (for the estate and conveyancing side) and an accountant (for the CGT and income tax position). Do not rely on what worked for someone else in a different situation. Your circumstances are specific.
Once you have that advice, we're happy to talk through the property and what Eleva could offer — whether that's a partnership, a direct acquisition, or something in between.