All Topics / Help Needed! / home loan structure as partners

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  • Profile photo of passivepassive
    Member
    @passive
    Join Date: 2004
    Post Count: 2

    Hi,

    My friend I are planning to build a duplex at pimpama valued at 500k.

    Any advise on how we should structure our loan?

    many thanks

    Jean

    Profile photo of LizzyLizzy
    Member
    @lizzy
    Join Date: 2004
    Post Count: 230

    Hi Jean,

    Depends what you mean by structure?

    You may want to split the loan into two sub-accounts for the purposes of keeping score of who pays what etc. Most banks split loans quite readily.

    Is it a construction loan?

    Could you be more specific?

    [eh]

    Liz Wilson

    Mortgage Lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The trouble with partnerships is you will both be responsible for the whole loan. You could split it in two, but both names would need to be on both splits – but at least you could run each account separately.

    Even having a company or a trust will not help as both trustees or directors will be required to give guarrantees.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of DDDD
    Member
    @dd
    Join Date: 2004
    Post Count: 508

    Partnerships of any kind have a danger aspect. One of you could get married, loose a job, have a boating accident with a propellor, anything could happen. Thes wildcards could adversely affect the joint venture/partnership in many ways. Great idea to save oncosts but if you are doing anything like this, emotion plays a part for most first investors. It could affect the friendship too.

    Just be careful, get a contract between you before you sign anything else but most of all have fun.

    DD

    Don’t sweat the small stuff,and it’s all small stuff!!

    Profile photo of AceyduceyAceyducey
    Participant
    @aceyducey
    Join Date: 2003
    Post Count: 651

    Unit Trust is a good solution as well – with a corporate trustee owned 50/50 by the two of you.

    It makes it easy to make changes & to manage tax & liability effectively.

    Cheers,

    Aceyducey

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