Hi,
I am a First Home Buyer – my new place is due to complete construction around March 2011.
I would like to reside in this property in the initial 6 months to be able to claim the first home owners grant. After these 6 months I would like to rent this property out and use it as an investment. I am looking to use equity in this property further down the track in order to acquire more investment properties.
I dont have much knowledge in the structures which are available to me but I am aware of trusts etc which can be set up to minimise tax (pay for the property before tax) etc.
Are there any suggestions in terms of what structures are available to me?
Thanks!
If you have already signed a purchase contract it is too late to amend the Title to buy in Trust without incurreing double stamp duty so that one is out.
As the property is off the plan you have plenty of time to arrange finance but the normal recommended loan strucure would be an interest only loan with a 100% offset account.
Richard Taylor | Australia's leading private lender
FHOG is not available for land purchased by a trust. Nor is the CGT exemption for main residences.
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
yes Terry is right, FHOG is not available for purchae under trust structure.
you can transfer it to a trust after the 6 months, however, you will have to pay stamp duty for it.I would NOT transfer to DFT as it will incur Stamp duty
Plus you need a main residence for CGT exemption up to 6 years.Unless you are buying another PPOR in the future (with better growth/value), then it MAY be wise to transfer it to DFT
You must be logged in to reply to this topic. If you don't have an account, you can register here.
