Hi all,
I own my own home in Adelaide, am a 51year old widower working full time for wages not a owner of a business.
As a new investor whos newly constructed first IP home in Townsville which will be ready to rent out early May.
I am seeking help to find out if I could set up perhaps a family trust then sell my own home in Adelaide to the trust then rent my Adelaide home back from the trust. I could get bank finance to do this the proceeds about $200,000 could be then used to positivly gain up to 5 houses.
I just need to know if this is possible and what are the pitfalls such as taxation ect.
Any help or other ideas would be appriciated.
regards
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Andrew
[email protected]Well you trust would have to pay stamp duty, when it buys your property, and of course CGT when it sells it.
I do not understand why you are wanting to put your PPOR in a trust… Is for asset protection or too simply borrow money??
If it were to simply borrow money, I would talk to a mortgage broker, as you should be able to use the equity in house to lend to the trust which will then place the deposit over the property and the banks will then lend to the trust (you will still have to sign a guarantee).
Rgds.
Lucifer_auI agree – just re-finance your house to borrow equity in it as deposits for other properties. Again, be careful of double stamp-duty payable on the TRUST!!!
“If You never never ask, you’ll never never know”
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