Hi,
We are experiencing some difficulties finding a lender who will lend to a Hybrid Family Trust.
Ones we'd spoken to only lend to Unit Trust not Hybrid Trust.
Anyone here knows of lenders that will lend to Hybrid Trust???Many thanks in advance.
Stacey.
Steer clear from hybrid trust…. but interestingly, the current API magazine posted article on Hybrid trust investor vs. ATO
I am only aware of 3 standard lenders who still consider full doc applications where an HDT is involved.
Richard Taylor | Australia's leading private lender
no one
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
@ Richard – Who are the three standard lenders that will lend to a hybrid trust?
Ryan McLean | On Property
http://onproperty.com.au
Email MeSorry me old mate Trade secrets.
Unless of course you would like to email everyone a list of addresses for free of the properties on your + website.
Richard Taylor | Australia's leading private lender
Hehe. I understand.
It is important to keep your trade secrets to yourself. If I ever invest with a Hybrid trust (don’t plan on doing it any time soon) I will come to you
Ryan McLean | On Property
http://onproperty.com.au
Email MeThank you to all.
Two years ago the accountant helped set up this family trust and only until recently we realised it was set up as a Hybrid Trust. After been knocked back time and time again by lenders. Will call the accountant tomorrow and see if can be change to a unit trust as CBA are happy to lend to unit trust.@ Laydo – That sounds like a good call. Hybrid trusts sound like WAY too much effort to be worth it (unless you REALLY know what you are doing). It certainly helps to go to your accountant knowing what you want. I have learned that accountants generally only do what you ask them to. They only answer questions you ask…they rarely offer advice…
This is my own personal experience.Ryan McLean | On Property
http://onproperty.com.au
Email MeLadyo
How long ago was your trust set up? Many older deeds will not pass with the ATO – if you are wanting to claim the interest on the borrowings against the unit holders personal income. If it is a more recent one then it may be ok
Changing the trust to a unit trust may trigger a resettlement = CGT and Stamp duty on transfer of all assets of the trust to the new trust. So please get advice before you do this.
Any why use a unit trust anyway? This will not lead to any asset protection and little tax flexibility.
And, lastly, the problem with the lenders may not be the fact that it is a hybrid, but the fact that you will have the title in one name and the loan in another name = third party lending. If you are stuck then applying for the loan in the name of the trustee may get you thru – but watch the tax consequences.
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
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