My wife and I are planning to purchase a tree change property a couple of hours from the city. The intention is to rent for some time then live their p/time while the kids are at uni, then full time later and set up a farm stay. Obviously while it is rented in the interim we can claim it is an IP.
My in laws (pensioners & drawing fixed super) have just sold there house and are sitting on the cash while they rent. They are now interested in joining us in the venture. This is OK with us and enables us to get a better place possibly with 2 residences.
Our thoughts have been to purchase the property in our name (which they are Ok with) and then rent to them, we can use the additional residence to visit on weekend, renovate over time, then relocate more permanently.
What are the create, alternatvie and legal ways to set this up?
We have examined familty trust etc.
Is just simpler to have joint ownership, however this may effect their pension and remove our ability to claim as an IP. Could we set this up as a private superfund, as I may have cash at some time to roll out of an existing fund which could back off the mortage?Thanksd for your advise,
"Confused already but, Holdenon"
Many things to think about.
Depending on the size of the place you may be able to use the PPOR CGT exemption, depending on whose name it is in and how it is set up – but you only get one property as your main residence.
You also need to consider centrelink benefits, land tax, and asset protection issues – eg if a future customer staying there were to fall over and break their back. You also need to consider non-financial aspects such as the benefits of the parents living there. Also estate planning needs to be considered – on death of one of the parties how and who gets their share etc.
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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