which lender?
Scary stuff… certainly wouldn't get away with it at my end of town…
Hi All,
Amateur question…
My PPoR is in my and my girldfriends name. I am looking to start a property trust as I plan to purchase some investment properties. As my plan is to rent this one out, is it possible to transfer the property and mortgage into the trust without incurring the cost of CGT and stamp duty? Also, would my lender mind me doing this if I continue to personally guarantee the loan?
Thanks in Advance
Simon Plummer | SP
https://www.sp.com.au
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No, you cannot transfer without stamp duty and CGT would be pyable if the place was a rental property. Also the lender would require you to discharge the loan and reapply for the new loan as the ownership would be changing.
Why not keep it as is and claim the main residence CGT exemption. Get future ones in the trust.
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
Terryw wrote:No, you cannot transfer without stamp duty and CGT would be pyable if the place was a rental property. Also the lender would require you to discharge the loan and reapply for the new loan as the ownership would be changing.Why not keep it as is and claim the main residence CGT exemption. Get future ones in the trust.
Yeah that's what I guess I will have to do. In attaining finance for properties purchased in trusts, are lender's rules similar to if you were purchasing in your name? Like would they still offer the same LVR and have the same borrowing power rules?
Simon Plummer | SP
https://www.sp.com.au
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Yes pretty much the same. It can be a bit more difficult if you have a corporate trustee, especially with low doc loans.
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
Excellent
And in setting up a simple trust structure would it be best to use something along the lines of cleardocs.com or actually go to a trust accountant?
Simon Plummer | SP
https://www.sp.com.au
Email Me | Phone MeSP
Do you know what you are doing? All the roles of the trustee, appointor etc? If not it may be best to get some advice of you could make costly mistakes
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
Depends on how complicated the structure is.
Simple personal Trustee probably look at a draft deed and do it yourself but if you where in doubt get your Accountant to do it.
As Terry mentioned lending policy much the same but only difference would be the application costs and the interest rate.
Most but not all lenders wont discount their interest rates with a Corporate Trustee.
Richard Taylor | Australia's leading private lender
I do not know exactly what I'm doing, but have a general idea as I have read a few books surrounding the topic. It may be best for me to get some advice. Can anyone recommend anyone around Sydney city?
Thanks for your help guys
Simon Plummer | SP
https://www.sp.com.au
Email Me | Phone MeSP
Yes Terry W is an expert on Trust Structure and based in NSW so why not contact him and ask him to assist you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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