Does anyone know what this means?
The reason for asking is myself and my husband are about to move to a small town with excellent IP oportunities. Work will be paying for our rent but this will be paid directly to the landlord/ RE agency they will not provide us with the money to pay a home loan. We would like to be able to purchase a property to live in ourselves using the money provided to pay a PPOR to later turn into a IP when we leave the town.
How do we hide this? I know one option is to buy in a company name but there is no CGT concessions, does any one know anything about a hidden tenancy agreements or have any other options??
Thanks [biggrin]
Why not use a lease option or a wrap?
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdWho is the company paying for? Both or just one of you?
Buy property in the spouse that is not being paid, put it in the hands of the agent to manage and then have them collect your rent.
The company will never know. I do find this very strange though. What difference would it make if they paid you direct or an agent? I would be having words with the company.
Byronent
Adelaide SAThe company is paying for my husband through his work. Unfortunatly it’s been company policy for years.
I’ll look into the spouse option, thanks.
I would suggest buying the house in your name. If you are keen to continue receiving the rental assistance. Give it to an agent, using a Post Box for your address with the agent.
You should find that the company are none the wiser. Even try and buy the house you are currently renting if it suits your property investment plan.
Byronent
Adelaide SAYou can still use a company as trustee for a discretionary trust and then have access to the 50% CGT discount.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You may find your husband’s employer’s requirements are because of Fringe Benefits Tax and concessions for remote housing.
ATO Interpretative Decisions 2003/157-160 show there is different treatment of mortgages and rent from the employer’s point of view.
Rather than hide things from your husband’s employer and run the risk of penalties to the employer if the ATO does an audit there would seem to be a number of options:
1. work with the employer to see what options might be available under the FBT laws that might provide a win for both parties
2. if this town is such a great IP opportunity, rent a house which the employer pays the rent on and buy a different house in that town
3. rent in the town and buy somewhere elseBe careful about non-arms length transactions
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