I am settling on a property on the Gold Coast on March 26th.
Since my offer was accepted, I have come to the realisation that a hybrid trust is the way to go for my future purchases. Not sure given the date, if I can avoid the possibility of purchasing in my name only.
Will speak to my solicitor tomorrow to get their advice. In the meantime, anyone have any thoughts??
I will still set-up trust because, as I will be settling another propoerty end of 04, but would like to capture Gold Coast property if possible.
James
James, you ‘may’ be able to do it if you initially set the trust up with yourself as trustee. As trustee the properties are in your name anyway.
Definitely ask the solicitor – I’m not sure if they have to do anything special in the contract etc. to show that it’s being bought ‘as trustee for’.
Cheers
MelThanks Mel. Will get everything moving tomorrow. Offer is James Georgis and/or nominees, so there shouldn’t be an issue. The bank though would be another. May ask to put back settlement to give me extra time.
James
James
Not sure if you are unconditional on this property yet but you will have a stamp duty problem if you have signed as “and or nominee”
The Stamp Duty Act was amended a few years ago to stop this being done and could mean that double duty is payable.
One way around the problem is to use “A nomination form” and minute it.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Richard,
Not familiar with a nomination form. That is what exactly?James
Hi James,
Hybrid trust is best go for it. It will take only one day to create if you find right accountant. I know one good one in Sydney but you are in QLD you can still use him if you can’t find one quickly there.
I did my property also in QLD “and or nominee” so you did good so you won’t have any problem.
Even if you buy under Hybrid trust title on the property will be showing your name only. It will be just trust asking you to buy property.
Good luck!
Cheers
[
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PropertyGuRu
I want to be billionaire! [] Originally posted by **PropertyGuRu**:Even if you buy under Hybrid trust title on the property will be showing your name only. It will be just trust asking you to buy property.
is it possible the creditor would misunderatand he is the owner?
Julian [
]THERE IS ALWAYS A BETTER WAY!
Just an update, Richard you were correct. There is a double stanp durty issue here (even with and/or nominees). It needs to be nominated and agreed to by the vendor before the contract is signed.
However, we will go to unconditional approval from my bank, then get approval from current vendors(concurrently actually), to cancel existing agreement and then re-sign with the Trust name. Only need vendors OK now.
There are lessons learnt in everything you do.
James
James
Exactly. Seen too many clients caught with the double duty issue whatever property guru says.
A nomination form is used normally at Qld auctions or where the Vendor is unavaiable to sign on the day of Contract. I would nominate you to bid and sign on my behalf and then at a later stage would advise the Vendor who the actual purchaser was.
Assume that you where establishing a Trust or Pty Ltd Company and had not received the full details you would state that this company would nominate you to sign on its behalf.
Only problem with your idea is you always run the risk for a fraction of a second that the Vendor will not resign the Contract. If that happens you maybe left to terminate.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Originally posted by Julian:Originally posted by **PropertyGuRu**:Even if you buy under Hybrid trust title on the property will be showing your name only. It will be just trust asking you to buy property.
is it possible the creditor would misunderatand he is the owner?
Julian [
]THERE IS ALWAYS A BETTER WAY!
You have to give bank your trust deed when you apply for loan and tell them about it.
Cheers
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PropertyGuRu
I want to be billionaire! [] Thank You, Property Guru.
One thing more, If the a appreciated property is Sold , Company/trust can’t get 50% CG off, What’ re the good porint we use this structure ?Regards
JulainTHERE IS ALWAYS A BETTER WAY!
Hi James and Richard,
You have to nominate the final names before the final contract for sure. Sorry if Miss understood something.
Julian,
You will get the 50% discount on CG if you buy under trust. Once you will read that book you will have clear understanding about lot’s of thing about trust. []Cheers
[]
PropertyGuRu
I want to be billionaire! []
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