Hi there
My partner and I currently own 3 IPs (2 in his name, 1 in mine). We also have our home in joint names. We’re thinking of buying another IP. Should we continue to buy in our own names or set up a trust structure? I guess what I am asking is – how many properties is the threshold before you start thinking a trust is better? We have no business or other “complicated” finances – just job income, our home and 3 IPs.
Am about to go see my accountant for advice next week, but any heads-up/opinions from experience greatly appreciated.
LA,
For mine it really comes down to what your strategy is for holding your properties. If you are focused on long term asset accumulation and wealth creation a trust vehicle may help you. Whereas, if it is your intention to seek short term depreciation benefit and capital growth where applicable and sell trust protection may not be that important.
There are lenders in the marketplace who will approve a Master Limit which will allow you to borrow in any name under one facility agreement. That is you can buy one in your name, one in joint names and put another in a trust name.
This may help when you make the decision to purchase furthr properties in a trust name, to transfer them and spread the cost of transferring the other properties into the trust over 6 , 12 or 24 months.
let us know what you think….Wade Greasley
Bluewater Financial Pty Limited
Residential and Commercial Lending Brokers
“Finance for Life”
[email protected][biggrin]Do you intend buying more? If so a trust is probably worth considering now.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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