All Topics / General Property / Scenario 2: What do u think….??

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  • Profile photo of Misty1Misty1
    Member
    @misty1
    Join Date: 2004
    Post Count: 348

    Scenario 2…what do u think…??
    If i was to arrange a wrap for a family member,what do u think would be a win-win situation:
    A) I buy them a very cheap property,that until they pay it off,is an i.p. for me.
    B) I build a small place (eg unit) in my backyard that i wrap for them (what would be my benefit?)
    C) I build another residence in back yard for me, & wrap them the older house currently lived in as PPOR?
    I’m having a hard time deciding,so any advice would be fabo.[confused2]

    Profile photo of Michael RMichael R
    Member
    @michael-r
    Join Date: 2003
    Post Count: 302

    There are so many variables associated with this question – and the options outlined, that I do not recommend making a decision based on advise you may receive from a public forum.

    You need to speak with an accountant and discuss the options with qualified advisors, i.e. a building contractor.

    — Michael

    Profile photo of ez-rentez-rent
    Member
    @ez-rent
    Join Date: 2003
    Post Count: 139

    Firstly, I doubt your council would give you the necessary approvals to do option 2..

    Secondly, everything would have to be ‘fair market value’ as far as the ATO is concerned. If you discount because its a family member, you will certainly get yourself into trouble..

    As Michael says, you had better see an accountant..

    EZ-Rent. The free tax and cashflow simulator for Australian property investors. Version 2 out now!
    http://www.ez-rent.com

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