Buying a House with Friends

Viewing 4 posts - 1 through 4 (of 4 total)

betesc
Participant
@betesc
Join Date: 2011
Post Count: 1
July 11, 2011 - 12:57 am
Hello
My partner and I are looking at selling our house in SA and purchasing in VIC. We have a friend that would like to put in, so we can purchase a large property, and convert/build a flat out the back. What is the best way for this to be setup? Trust? JV Partnership?
Also how will the bank treat the loan(s), one or two?
ksherwell
Member
@ksherwell
Join Date: 2007
Post Count: 125
July 11, 2011 - 7:02 am
I recommend trust, it has better tax advantages and ability to distribute funds freely.
For lending you may want to look out the portfolio packages.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 11, 2011 - 8:05 am
Whether to do it with a trust or not will depend on whether you will live in it and claim it as a main residence.
There are also ways to structure it so that only one of you has to guarantee the loan.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
colinnewland
Participant
@colinnewland
Join Date: 2006
Post Count: 128
July 12, 2011 - 10:33 am
Friends and business do NOT mix!
If you must, make sure that you are able to strata title the different buildings or set up a company that issues shares. Each property has a share that entitles EXCLUSIVE rights to that part of the larger property.
Remember, if you with to sell later on and they other party does not wish to or is anable to, you will find yourself ina right bind.