I'm hoping there might be some savvy investors out there who can help with me this question. My husband and I are buying our 2nd IP. I'm not sure whether we should put it just into my name, or joint names. Our 1st IP is in joint names, and of course our PPOR is in joint names.
My husband's income is around $75k, whereas mine is around $15k. The property we are about to purchase has sub-division potential, and we are hoping to sub-divide in the next 12 months or so, and sell the block/s behind the existing house (which we will keep and rent out). In this instance, we may turn this property into a positively geared property, which makes me think that perhaps we should put it solely in my name as I have minimal income. Whereas if it is also in my husband's name this would up his income, resulting in more tax payable (I assume!).
We are very new to the investing game and any help with this would be greatly appreciated.
Cheers,
JessHi Jess
Of course the 3rd option which we havent discussed and probably should would be to consider buying the property in a Discretionary Family Trust with both of you as Trustees and beneficiares. The 2 children would also be beneficiares.
Course downside is whilst the property is moving from negatively geared to positively geared you need to come up with the shortall as any losses are closetted within the Trust.
Flexibility can be key in a deal like this and the ability to move with the times might be worth forgiving the short term cash flow gain for the long term ability to distribute capital growth accordingly.
Richard Taylor | Australia's leading private lender
Hi Jess ,
I dont know much about tax implications but if the 2nd IP is financed using both you and your husbands income for loan serviceability the banks would require joint title. any of the more experienced investors out there please feel to correct me if i am wrong..
CheersHarry no that is incorrect.
Many deals are done with Title in one name and the loan in joint names.
Normally need to be some related party interest or benefit to the party concerned.Richard Taylor | Australia's leading private lender
Thanks Richard & Harry for your feedback.
Richard – I might give you a call I think!
Cheers,
JessThanks Richard for that info
cheers
harry
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