Ownership options

Viewing 5 posts - 1 through 5 (of 5 total)

HR
Participant
@hr
Join Date: 2010
Post Count: 1
January 8, 2012 - 2:24 am
Good morning all,
I am seeking options to assist with a current development I have recently commenced.
My current property is a triplex site in Perth. It is owned 100% in my name due to me being the prime income earner in my family and my investment plan carried out at the time. The development has just commenced but the property has not been subdivided yet. My intention is to retain the three new units once built.
I would now like to know when the block is subdivided if I can change the three blocks into ownership via a family trust prior to the new titles being issued. The reason for this is due to a change in my investment plans for the future, my intention is to be able to borrow more down the track and join a friend in completing small developments. I am concerned that my current development once completed will limit my borrowing ability.
Any alternative options or opinions will be appreciated.
Regards
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
January 8, 2012 - 6:33 am
Even if you put it into a family trust; your still a guarantor of that loan and beneficiary of the trust.
You still need to declare to the bank every loan your a guarantor of- and the liabilities and income of it will be used in the serviceability based on ownership.
Your best to sit down with a broker/ financial planner and go throught the numbers to see if you have reached your serviceability limit and if not what sort of scenario would prevent you from doing so + your max borrowing capacity for each scenario.
Regards
Michael
Mick C | Shape Home Loans
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Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
January 8, 2012 - 9:51 am
Stamp duty on the sub-divided blocks will, in all likelihood, become an issue too.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 8, 2012 - 10:58 pm
CGT too as well as legals and new loans. GST too maybe.
Using a trust won't help you borrow more either.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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jneilen
Member
@jneilen
Join Date: 2004
Post Count: 2
January 11, 2012 - 1:14 am
If you proceed you should make the transfer before the works are started. The stamp duty will then be based on the current value and not on the final valuation.
jneilen