Firstly thank you to those that do respond to this. Appreciate your time.
My understanding is the general consensus is that for multiple property portfolios buying in our personal name is not the best option. That being said have been exploring other options but as with everything need to know the right questions to ask the accountant.
Situation is this – 1 investment property (IP) owned outright, 1 PPOR, 1 IP off the plan completing early next year. (all NSW)
Where we are at is all of the above were in personal names. Whilst not ideal it is what it is.
My partner earns significantly more than me so looking for ways to minimise tax as a priority as IP owned outright is a thorn in the side (not looking to sell just yet for other reasons)
We also are looking for partner to possibly reduce hours in the future as an option so incomes may change around.
Looking at buy and hold as the strategy.
Which is our best option to purchase the next IP and fingers crossed many more going forward.
I thought the hybrid trust was the way to go..but not convinced. Just need to know the right questions to ask the accountant so I can get it clear in my mind…
Thanks heaps!!!
I won’t get into the Trust vs. Personal name debate, but it’s worth noting that VERY FEW lenders are willing to lend to hybrid trusts, compared to Unit Trusts, Dicretionary and personal names.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Get some legal advice on this.
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
Only 4 lenders – Suncorp, St George, NAB and CBA will lend to Hybrid Trusts so be wary of this as you are seriously limiting your lender selection.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Thank you all for responses.
Appreciate the heads up to at least eliminate hybrid from a lending point of view.
Will continue my due diligence and agree advice is required.
Back to the accountant etc for a new round of questions.
This is only the case where the loan is in a different name to the owner of the property.
There are a wide varieties of hybrid trusts and lending will depend on the structure and terms of the deed
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
Hi,
Thank you to all who may respond!
Does “SMSF” (Borrowing to create a property profile) outshine the “Discretionary Trust”?
Which strategy is better to create a property profile (may be negative gearing and at age around Mid-High 50s ) after comparing with all the setting cost, on going fees and the tax benefits….etc??
What if the risk that government may change the policy in future?
What do you recon?
Any information would be much appreciated. Thank you.Hi,
Thank you to all who may respond!
Does “SMSF” (Borrowing to create a property profile) outshine the “Discretionary Trust”?
Which strategy is better to create a property profile (may be negative gearing and at age around Mid-High 50s ) after comparing with all the setting cost, on going fees and the tax benefits….etc??
What if the risk that government may change the policy in future?
What do you recon?
Any information would be much appreciated. Thank you.I reckon you need to learn a bit more before you start asking these sorts of questions/
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
I previously said.. AMP also lend to hybrid trusts. Forget that, I’m getting my loans mixed up.
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