Ive putting a holding deposit on a unit off the plan (to be build by 2012). About $600k.
They want 10% up front and the rest on completion.
Whats the most tax effective way of:
Question 1 – funding the $60k – straight money from my Trust or from Me personally or with a Bank loan.
Question 2 – having the contract made out – in the name of my Trust or in mine?
I currently rent and work from home so can claim a deduction already.
I currently have no other property investments.
There are a few possibles …. either
1. I sell it before its completed (if the increase in value is worth it).
2. I move into it on completion
3. I rent it out on completion.
Probably short question but I expect some long answers.
Thanks everyone.1 … what suburb
2 … why this choice …
3 … deposit stays in your solicitors account not theirs (in case they go broke)
4 … can u use a deposit bond …
5 …sign it and or nominee
6 … good luck1. In Brisbane
2. I thought the Trust option would give me tax deductibility if I fund via a bank guarentee
3. fair point but they need the 10% to fund the building start up – big developer, unlikely to be a risk
4. not sure what a deposit bond
5. ?
6. thanks
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