Hi can anyone here give me some feedback on this!
I am considering purchasing a property for my next PPOR but i would like to rent it out for a couple years first. Would it be a good idea to purchase this property in a Trust structure as IP and then later on move into it as my PPOR but i would then rent out my old PPOR as a IP.
Does that make sense is it a good idea? What are the implications if the PPOR is in the trust already?
Thanks for any feedback!
Hi Pos
Yes it can be a good idea however couple of things to consider:
1) In most States you will pay a higher rate of Transfer Stamp Duty if the property is considered an IP from day 1.
2) In some States you will incur Land Tax which again maybe higher if the property is held in Trust.
Without knowing all of the details it maybe more beneficial to take out a nice high LVR interest only loan and purchase the property in your personal name.
Richard Taylor | Australia's leading private lender
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