Hi Guys
Its been a while since I haev been on here hope everyone has a great christmas and new year!!
Now down to business, I have just been reading a previous post and the issue of selling up and creating a family trust came up, and im wondering if this may be a good option for me and my parents. Iam currently in the process of selling my first PPOR and my parents are currently renting before building a house of thier own. We have decided to buy an apartment in Northbridge(for those who dont know 2 mins from CBD) of the plan for me to live in as an investment and then sell splitting the profits.
Im just wondering if I could get any feedback from people as im starting to have second thoughts on the place as I want to get firmly into property investing and it seems that by owning your own home is a hard way to get into the property market.
Any feedback would be very welcome
Cheers
AndrewAndrew, I guess it depends on how you do it.
If you were to buy this unit and live in it – would you pay market rent, or would you and your parents split all costs?
What sort of demand is there for these apartments/area? Is it likely to resell at a future date for a profit? Is it a demand area for tenants?
If you definitely need to live in the area, and can afford market rent, an option could be to set up a family trust (if you’re going to get into investing in a reasonable way this might be a good idea anyway) and have it buy the property. Then you can rent from it.
When/if you sell, you can then distribute the profits in the most tax advantageous way at the time – you are not locked into 50/50 or 33/33/33 or anything like that.
check out http://www.gatherumgoss.com and look at the manual Trust Magic.
Cheers
Mel
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