Hi,
We’ve spotted a property we want to bid for at auction on Saturday. Been meaning to set up a Hybrid Trust but haven’t got there yet. We already have a Family Trust established. Are we better to buy in joint names or use the Family Trust? If the price is right we would move in build a second house, then rent it out. Then renovate first house and rent it out. Well that’s the plan. Any advice?
Hi David,
You need professional advice from your accountant and or solicitor. Each person’s situation is different, and nobody here can really tell you what is best for you, going on the little information that you have provided here.
Is the family trust set up soley for purchasing property, or is it a trading company?
What are the benefits of a hybrid trust?
Depending on which state you are in, perhaps you could use the “and/or nominee” clause, but definately check this out with a solicitor/accountant.
Good luck at the auction,
Del
Yes, I would suggest you get professional advice. But you have to decide what you are going to do with it. There may be advantages in buying it in you individual names if you intend to live in it for a while (CGT savings). But if you have other plans, then probably a trust is better – and you need to determine which type is best.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
davidb,
I would definitely not bid at an auction for a property I had not fully analysed beforehand. It’s good practice to complete a financial feasibility on your concept ahead of time, so that you won’t make a potentially emotional decision in the heat of a bidding frenzy.
I still don’t think it’s good to buy potential development sites at auction. There are other (safer) ways to purchase that I’d seek out first.
Peter.
—
Peter Comben
http://www.smartpropertydevelopment.com.au
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