Forums / Property Investing / Help Needed! / Bought a property before I read this book

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  • Profile photo of EzEz
    Participant
    @ezza08
    Join Date: 2018
    Post Count: 0

    Hi All

    I built a property that is now an investment as we shifted and now building out in new location. Have capital growth of around 150k ( Clyde north area ) but house is not set up as a trust so debt is against our name. Can we switch it to a trust etc ? As I want to look into regional bargains for investments in a year

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,058

    wow, what book did you read!??

    What is the issue?

    Transferring the property to a trust or declaring a trust over it will result in stamp duty and trigger a CGT event.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of EzEz
    Participant
    @ezza08
    Join Date: 2018
    Post Count: 0

    Steve’s 0 – 130 properties , as I want to buy more investments I beleive after we build our family home we will be maxed out for lenders as both home loans are under our names rather than the investment under a trust , with us as guarantor.

    We have a rental but it’s run at a slight lose at the moment due to expensive land prices out in the south east

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,058

    Most lenders will treat guarantees the same as taking the loan itself for serviceability purposes so using a ‘trust’ will not help in this regard, but could hurt because any loss will not save you tax so negative gearing addbacks won’t help.

    But careful structuring of a trust can also improve serviceability in other ways. I think I have written a thread about this on here somewhere.

    Also you need to consider the other legal, taxation, estate planning etc issues with using trusts.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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