Hi all,
We plan to set up a trust, but are still in the process of organising how best to do it.
Unfortunately, timing wise, we’ve just found a great deal and have made an offer that looks like it will be accepted.
Our question is –
Can I sign the contract “my name and/or nominee” and then, on settlement, substitute that with the name of the company that I will have set up to run our trust?ie: can we get the property into the trust (on settlement) without incurring another stamp duty bill?
Obviously it would be better if we got the trust set up AND THEN found the right property but it just hasn’t happened that way.
We’re in SA, if that makes any difference.
Advice please!!
regards,
CarlinSame thing happened to me. Unfortunately, I was informed I had to pay the duty again. The Trust must be registered prior to signing contract of sale.
You need accountant or solicitor advice.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksDamn! Well, if we get this one it will just have to be in my name. Knew I should have got on to this trust business quicker, but it’s taken me a while to get my head around it.
Still, will confirm with accountant that this is the situation in SA too.
thanks,
CarlinI just replied here:
https://www.propertyinvesting.com/forum/topic/18030.htmlI am not sure how it works in SA.
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
I also replied as per Terryw.
CATA
Asset Protection Specialist
[email protected]thanks for all your help.
The contract is signed and we’re now in cooling off. It’s an excellent buy – we’ve been looking for 18 months!!!
Anyway, now can’t work out whose name the contract should be in.
Doing the sums with purchase price (+ costs) and expected rent (by the room), yield will be about 9.5%.
On our calculations, this will cover outgoings and will make it only just positively geared (and we haven’t taken into account depreciation).
House (6br, 2bath) built in 1963 with very minor extension done in 1998 (new kitchen/dining).
Will be furnished for students (good quality second-hand, already bought) and will have whitegoods (probably new). So not sure what kind of scope there is here for claiming depreciation.
So, should it be in the name of the lower income earner or the higher income earner? Or in both names. Or do you need more info?
thanks,
Carlinforgot to add that I have signed the contract “my name and/or nominee”
Usually positive investment properties go in the name of the lower income earner and negative imvestment properties go in the name of the higher income earner. It will depend on your tax brackets as you may both be in the highest bracket where it won’t make much difference.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
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