Hi All
I built a property that is now an investment as we shifted and now building out in new location. Have capital growth of around 150k ( Clyde north area ) but house is not set up as a trust so debt is against our name. Can we switch it to a trust etc ? As I want to look into regional bargains for investments in a year
wow, what book did you read!??
What is the issue?
Transferring the property to a trust or declaring a trust over it will result in stamp duty and trigger a CGT event.
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
Steve’s 0 – 130 properties , as I want to buy more investments I beleive after we build our family home we will be maxed out for lenders as both home loans are under our names rather than the investment under a trust , with us as guarantor.
We have a rental but it’s run at a slight lose at the moment due to expensive land prices out in the south east
Most lenders will treat guarantees the same as taking the loan itself for serviceability purposes so using a ‘trust’ will not help in this regard, but could hurt because any loss will not save you tax so negative gearing addbacks won’t help.
But careful structuring of a trust can also improve serviceability in other ways. I think I have written a thread about this on here somewhere.
Also you need to consider the other legal, taxation, estate planning etc issues with using trusts.
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
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