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The investor’s guide to trusts

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Your Investment Property | 13 Oct 2011, 12:00 AM Agree 1
Making sure you are using the right ownership structure for your property purchases is one of the most important steps in the property investing process – second only to choosing the right dwelling.
  • danny | 07 Jul 2013, 10:23 AM Agree 1

    are you aware of unit trust homeloans where mortage is held under tax payer name?

  • Trustee | 25 Sep 2014, 12:30 PM Agree 1
    Hi, If you mean the loan is in the tax payers name and the title to the property is in the trusts / trustees name then yes many lenders are willing to do this structure. Is particularly relevant to unit and hybrid trust set ups. As a tip in NSW it also means you are not hit with loan duty (0.4% of amount borrowed) as the loan is in personal names not a company (trustee) name. [edited]
  • SHumaila | 25 Sep 2014, 04:33 PM Agree 0
    nice discussion going on ............
  • theboydoug . | 30 Aug 2015, 04:57 PM Agree 0
    Hi there,

    My mum has moved from the UK. She is awaiting her residency but in the meantime we were hoping to purchase a property for her. My sister and I are both citizens of Australia and are thinking of setting up a trust with her to purchase the property. Is this possible even though she's not a resident yet?
    • Cuzin | 24 Nov 2015, 03:51 PM Agree 0
      I would love to know the answer to this. I am looking at doing something very similar
    • | 25 Nov 2015, 09:48 PM Agree 0
      Before you decide to setup a trust to purchase property, you require to find out yourself why you need this structure. Is this for income splitting, asset protection or other personal matter.
    • Adrian | 26 Mar 2016, 05:19 PM Agree 0
      Hi there, yes it is possible and legal
  • Carlr Mathew | 25 Nov 2015, 08:12 PM Agree 0

    Thanks for sharing this tip and I am thinking to buy a property for daughter, as a wedding gift but I don't know that what things I should keep in my mind so that she doesn't face any issues later on.

  • carlr | 25 Nov 2015, 08:15 PM Agree 0

    Thanks for sharing this tip. However, I want to buy property for my daughter as a wedding gift but I don't know that what things I should keep in my mind before buying so that she doesn't face any other legal or any issues afterwards.
    Waiting for the helpful tips

    • Wilson@houseofwealth | 29 Nov 2015, 06:48 PM Agree 0
      Things require to consider
      1. Whether she is eligible for the first home buyer grant.
      2. What are the tax consequences if you purchase the property under her name. Income tax and capital gain.
      3. Asset protection if the married break-down.
      4. What is best tax structure to hold the property.
  • Vesta Capital | 15 Apr 2016, 01:35 PM Agree 0
    I'm a broker and have a trust set up in property. Look me up and I'm more than happy to help with any inquiries.
  • Jaydana | 27 Aug 2016, 04:35 PM Agree 0
    We already have our own home but want to take out a loan for our oldest son and his partner who cant afford to buy a house outright themselves. If we put the house into a "family trust"ownership and make our son a 1% shareholder (he is in a high risk occupation for being sued so he doesn't want assets in his name at this stage), when it comes time for him to take out his own loan and take over the ownership of the house, can we then give him the rest of the shares of the "family trust"and he doesn't have to pay another lot of stamp duty etc to take the house over?
  • Kodi | 02 Mar 2018, 06:31 AM Agree 0
    I previously was in business for a allied health clinic. I had a company and trust.
    I am not sure the type of trust. (I can Aamt my accountant). I am no longer in business, however kept paying to keep the company and trust
    Just seeing based on the information given.
    Would it be suitable to put an invest property in the trust / company?
    Our goal for the trust/company is to get the best possible tax offset. Eg when selling and or calming.
    From your information I see you can’t claim against personal income. So if I understand correct, the benefit is to reduce CGT paid on the property when sold?
  • Jack | 30 Apr 2018, 11:42 AM Agree 0
    I am a non resident Australian, who is nearing retirement with a pre 8 May 2012 Australian property (loan free) that has generated a capital gain based on a valuation (by a professional valuer) at 8 May 2012 (the date I lost the my 50% CGT discount as a non resident). Based on a recent sale in early 2018 of a nearby and similar property there has been a further capital gain since 8 May 2012 and now I have now been approached by a buyer to purchase the property at a price significantly higher than the recent sale (the nearby property).
    My question therefore is should I consider setting up a family trust (1 child), selling the property into the trust based on the sales value of the nearby property (the sale would be through a loan from me to the trust at normal interest rates), incurring the stamp duty and paying the relevant CGT etc. Assuming prices hold the trust could then sell the property at the higher price avail itself of the 50% CGT discount on any capital gain this legally reducing the CGT on the property if I was to sell as a non resident. The sales proceeds could then be invested by the trust for the benefit of me in retirement and my family.
    Does this make good commercial sense as the potential savings could be quite substantial?
    • Chris | 14 Jul 2018, 06:21 PM Agree 0
      Hi Jack,

      Listen to what you are writing! You're saying you want pay CGT twice. Once at the full rate and then at the discount rate.
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