Hi. I set up a trust as a way of investing and reducing tax (I work, my wife doesn’t) and intend to purchase an investment property in this trust.
Question – should I draw equity from my home to loan to the trust to buy the property without debt or borrow from a lender to buy the property? By the way, I don’t intend to be a serial property acquirer using revaluation and equity techniques to keep buying.
I’m interested in thoughts on the best way to finance the property purchase.
Thanks. AJSeek legal advice before the trust does anything.
You will probably get a cheaper rate by drawing from your home loan and on lend to the trustee but many legal, tax and lending issues to consider.
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
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