one of my banks did something similar.

Think of the good side, you have had that money in your hands for an extra 8 months!

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Plan the finance side as well. Suddenly giving up your day job can make it harder to qualify for finance.

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I would probably look at setting up a hybrid trust with one of you as trustee. Also, probably only one named beneficiary (because banks may ask for a guarrantee from the other named beneficiaries.

The hybrid may only cost $1200 or so to set up. You will be able to negative gear if needed, and also have the flexiblity in the future if needed – plus the asset protection issues.

I would never buy in personal names. But Thomas may be correct, since you’ve signed hte contract and the trust is not set up, it may be too late this time. Check this with your solicitor as it may vary from state to state.

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It could be very dangerous in doing your own lease – unless you are a lawyer.

You may get some important point wrong, or leave something out which could cost you dearly down the track.

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Hi Mike

Yes I was a bit vague there. Of course, a company could just sell the property to another person or entity.[blush2]

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Derek

I think you are mixing up superannuation trusts and discretionary trusts. Discretionary trusts can purchase property held by a beneficiary. A few of my clients have actually sold their property to their trust.

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Hi Carlin

What you would need to do is to decide on the new lender, apply and wait for the valuations to come in. If there is enough equity in there (and you service) than you can, maybe, have a loan for the existing property and a split for the extra equity.

Once the deal is approved, the new lender will payout the old lender and titles will be brought across.

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Did your husband marry you?[blink]

Watch out for those cheap properties returning a high yield. Just because the yield is good doesn’t mean they are a good investment.

Just keep reading as much as you can, especially posts on forums like this.

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Hi Darren

Yes you will have to cover the interest on both investment loans and the home loan. You could possibly do this from rental income (if the yield is high enough) or more likely, from other income (ie negative gear).

If you had the cash, you would have less interest. But from a taxation point of view, if you had the cash, you would be better off paying it into your home loan – non deductible debt.

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Even if you will not have a loss, a hybrid trust may still be worth considering due to other benefits including hte refinancing principle.

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