We currently have a home + invest property being built (under construction loan).
We have our home on the market looking to move into inv property when coemplte and reduce our overall mtge.
The market is slow, so we’re thining about it becoming an inv property (as its smaller than the one being built). Have hear a little about trusts etc and wonder what the best option is for our situaiton.
Thoughts/advice – things to look out, and tax benefits would be appreciated.
Ta
Look at the rental return you could achieve with your home – turning Investment prop. Will you be able to survive with the mortgage?
If you rent out the new house (the one you are building), you will have much more depreciation benefits from all the new fittings etc.. which is an on-paper loss that you can offset against your taxable income. This maybe more financially viable for you, and then you could look at making it your home in 4 years or so, when a large portion of the deprciation has been used.
As far as trusts, do some reading. It is hard to know because you haven't given much information. You could also talk to an accountant that speciallises or knows alot about trusts.
Kelly
With actual figures an accurate assessment could be made.
Richard Taylor | Australia's leading private lender
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