We are a family, 3 seperate households with 4 incomes, wanting to find out the best way to invest in property together. Currently one family member has a property in her name, which the rest of the family is putting in to help pay off the mortage faster.
Is this the way we should be doing it?
If so, how do we go about getting another property?
If not what should we be doing?
Is it a family trust we need?
Simply, how can we build wealth together?Many things to consider.
Firstly is borrowing capacity. All going in together may hurt this.
2nd, flexibility. A discretionary trust is the way to go, but if you have separate families, then maybe a unit trust with fixed percentage. each family can then have their units owned by their own discretionary trust.
3rd, protection. Each person needs to protect their assets and limit guarantee. having one person guarantee will limit risk and preserve borrowing capacity. Others can be added if need be. After settlement you could lodge a caveat so this will prevent it being remortgaged or the loan increased etc. Each family could do this to protect themselves.
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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