Forums / Property Investing / General Property / first home owner grant/professional LMI exemption with trust structure

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  • Profile photo of Jcam92Jcam92
    Participant
    @jack-shepp
    Join Date: 2017
    Post Count: 17

    I am a first time investor, and yet to buy a property. I am in the process of structuring my long term plan. I am also a physiotherapist and therefore qualify for the LMI exemption mortgages up 95% LVR that I have seen offered and also the QLD first home owner grant of 15k. I completely see the benefit of buying property via a trust and agree however if i do that is there a way I can also make use of the benefits of my professional and first time buyer status. I am in no way reliant on either initiative to be market ready however I am looking to maximize the amount of finance I can access in order potentially to purchase more then one property/or minimise the amount of my own capital is required for my first investment purchase.
    1. what is your opinion on the professional LMI exemption schemes/first home owner grants?
    2. is there a way to utilise either/both of these whilst still implementing a trust structure?
    3. If not, is there any value in purchasing in my own name to utilise the above schemes then transfer ownership to trust?

    thankyou for your time, I appreciate any advice available

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    what is your opinion on the professional LMI exemption schemes/first home owner grants

    If you can avoid it do so as long as the prevailing package doesn’t end up costing you more in the long run.

    is there a way to utilise either/both of these whilst still implementing a trust structure?

    No

    If not, is there any value in purchasing in my own name to utilise the above schemes then transfer ownership to trust?

    No as you will incur Stamp duty and LMI again.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Jcam92Jcam92
    Participant
    @jack-shepp
    Join Date: 2017
    Post Count: 17

    Thankyou, is there any alternative strategy/structuring that you know of that allows you to utilise the LMI exemption/FHG schemes that is more profitable then investing through a trust structure. Or regardless of the incentive/scheme/plan for transfer of ownership, in the long run investing through a trust and forgoing grants and schemes is the most profitable in the long run.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    No regretfully not there is no other choice but to buy in your own personal name.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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