Hi guys new to the forum. A friend and I can looking at doing our first joint venture together. We are looking at buying a property sub dividing the property and putting another house on the rear block. Once complete sell both hopefully for a profit. Basically I am chasing some guidance as to how we should buy the property ie trust hybrid trust. We both have families so can we set up family trust to purchase the property? Can we obtain finance for a hybrid trust? Does anyone know of a good accountant that could assit in this matter, living in perth. Thanks in advance
Try Geoff Carslake of Shreeve and Carslake in Herdsman Business Park. T: 9244 2900
This is not personal advice, this is general advice. You should not take actions on anything I say and speak to an appropriate advisor.
I know of many good accountants who would get a private ruling before using a hybrid trust. I do know of 1 way that it is considered legal without it being for tax purposes. However, the person's intention must genuinely be for this or they could get in some serious trouble. For our clients we are reluctant to obtain future borrowing in hybrid trusts as it is very restricted in terms of lenders.
Generally, family trust's as the name suggests are more used in a family purpose and less in a business purpose due to the way they can distribute proceeds.
I know of a good accountant who can give you advice on an alternative structure.
Hi Harj,
Sounds like you’ve got a good project on the go. Nice work.
I believe obtaining finance for hybrid trusts at the moment is quite difficult. You may not need a hybrid trust though.
I’ve done a few developments and have used a joint venture agreement whereby the purchasing entity is a company that you and your partner would control. Happy to have a chat if you’d like to find out more.
I also have a great accountant that could help you out. We are both based in Melbourne though…
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