Hi All,
My friend is about to receive her inheritance (an investment apartment) but does not want to loose the her FHOG. Is there a way to avoid this loss by establishing a trust etc for the property? Or is she falsed to buy a house before receiving the property?
Looking forward to hearing from each of you.
Thanks
MarkHow much is the investment worth? I'm guessing it's worth more than $7000. So if she can't get the FHOG, she has an investment property for the cost of $7000. I'd do that deal every day of the week.
Gotta love it when someone is more concerned about money from the government than the asset from a relo.
Hi All,
The investment property (left from her father) is going to be split between her and her sister and its only valued at around $300k ($150k each). Obviously… its valued at more than the FHOG but there are other considerations such as stamp duty to consider.
Stamp duty + FHOG would be a loss of $18k ($500k property) + $7k = -$25k x 2 = $50k
Really couldn't care less which option is the better of the two, the point of the question is to get the best of both. I wouldn't throw away $25k. If somebody said there was a way to get $350k instead of $300k I'd take that deal any day..
Can a trust be established so that her and her sister won't loose the benefits of obtaining their own properties in the future? I haven't dabbled in property for a while but I believe this could be done using a discretionary trust / unit trust and the use of corporate beneficiary.
Appreciate responses from people who know more about property then I do.
Cheers
I beleive you can own an investment property and still get the FHOG in most states.
She may also not be considered to have owned the property if it is held by the executor of the estate (even if that is her) and then sold.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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It's ok to own an investment property as long as you have never lived in it.
bumskins wrote:It's ok to own an investment property as long as you have never lived in it.and if you have lived in it?
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
Then you don’t qualify.
I.e if you ever live in a property you own, you are no longer illegible for FHOG
Maybe look into whether the property (or their respective shares in the property) can be put into a testamentary (a.k.a. bloodline) trust?
Obviously legal advice would be necessary to see whether it is possible, and this would also provide extremely good asset protection, taxation benefits and flexibility.
Grow SMSF | Grow SMSF
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Yes you can own an investment property (if acquired after 2000) but I think you only get the FHOG not the stamp duty concession.
If you have lived in it then for that time it was a PPOR so you don't get anything.
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