EzParticipant@ezza08Join Date: 2018Post Count: 2
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 yearTerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
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.EzParticipant@ezza08Join Date: 2018Post Count: 2
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 eastTerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
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.