Hi all,
I Would like to know how easy (or difficult) it will be to get a loan in your own name, borrow the money to the trust and then buy land or property in the trust(Hybrid Discretionary)
Ziggy
Ziggy,
The usual way this is done, is that the trustee on behalf of the trust borrows money to purchase units in the trust, in which the trust then uses these funds to purchase the property.
The trustee is usually liable for the debt in case of default. This is quite common and should not be an issue, although some banks are easier than others to deal with…..
For negative gearing purposes should you not get the loan in your name and buy the property in the trust?
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