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Thanks Terryw.
I understand there is no way to fully protect my FIL. Rather I was looking for the best way to protect his assets and save him unnecessary tax costs.
At this stage, he is happy to be a guarantor and let me use the equity in his "property" as a deposit.
The gist of it is that I am about to talk to the lenders and I want to be able to advise them "this is how I want everything to be structured." Rather than hope they know what they are doing/will do the best thing by me and not them (not saying they would intentionally do the wrong thing, but I consult to banks and often they receive the most basic of training).
1. With that in mind, is there a best practice loan structure I should take?
2. If it's better to borrow the deposit from FIL, how would I do this, get him to refinance, LOC, etc?
I am definitely in the space of knowing a little bit but not enough to get me started confidently.
Thanks again
Thanks again for all the responses.
I have another question about structuring.
TheFinanceShop mentioned doing an equity release.
What tax implications would occur when we sell the property and I want to pay my FIL back?
What if we were to roll the profit into the next deal?My accountant has recommended I set up a trust (planning to buy, renovate and sell a few properties over the next 2 years).
Would FIL need to be a beneficiary?Basically, I’m looking for the best structure that will minimise risk and tax for my FIL. He is a sole trader.
Any further help would be greatly appreciated.
Thanks.
Thanks everyone for the replies
