Hi there,
Is it possible for me and my friends transfer our investment properties to new trust or new company?
We are thinking to combine our investment properties. The problem is all properties still owing loan. Shall we refinance it under new trust name or company name? We are happy to keep the loan as it is now if refinance too complicated.
Also, not sure if trust or company is better. Both seems similar.
Thanks,
Doreen
Yes you can, but why?
Problems:
little asset protection
stamp duty
CGT
legals
Need to discharge loan and reapply
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
People are still living with the idea that a trust is the mechanism it was pre 1990.
It really hasnt been a good mechanism for tax concession for about 25 years.
Thats not to rule out its overall purpose and OTHER reasons for having a trust over and above property in your name .. or a company name. But most of the real benefits have gradually been siphoned off through taxation amendments and changes in the dealings and protections that a trust offered.
If you need to allocate a property to a trust .. do it from day one. The mucking about and the accountancy and legals necessary to maneuver a property from an existing position are exhorbitent and unnecessarily expensive. And as Terryw stated .. the position with the loan has to be totally renegotiated.
Doreen, As Terry mentioned Yes it can be done but i would have to ask WHY you would want to do it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
After done some research understood now. Thanks to all. Appreciate it very much,
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