Hi, I have recently inherited 50% of a home in Brisbane valued at 700k. I have not owned a home before and I am looking to buy out the other 50% share, what would be the best way to protect the asset but still be able to use the equity to buy investment property?
Cheers.
Hi Drabs
You could set up a trust and use that to purchase the remaining 50%. This would provide some asset protection.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Agree with Terry however likely to incur Stamp Duty on the Transfer which in Qld is not cheap.
Alternative would be to mortgage the property and then deposit the raised funds in an offset account to reduce interest outlay.
This combination is often a good form of Asset Protection.Drop us a line if you want any further ideas.
Richard Taylor | Australia's leading private lender
Hi Richard
He only owns 50% and wants to purchase the remaining 50%.
Mortgaging the property is good, but having funds in the bank is risky as they are easily traced by the bankruptcy trustee – even if held in a different name or trust or company etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry i agree i was thinking short term whilst he expands his portfolio.
To sell the complete property into Trust In Qld is not going to be a cheap exercise and would depend on the occupation or profession of Drabs.
Richard Taylor | Australia's leading private lender
I suppose it depends on who owns the other 50%.
There are also various rules with inheriting a house – it may have been a main residence previously and maybe CGT exempt etc. There are also various rules on stamp duty in transferring to the beneficiary under an estate etc. I think Drabs had better get some professional advice.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hey thanks for the advice guys much appreciated.
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