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Buying a PPOR in a Trust

Discussion in 'Legal Issues' started by Matty77, 27th May, 2016.

  1. Matty77

    Matty77 Active Member

    Joined:
    21st Sep, 2015
    Posts:
    44
    Location:
    Adelaide
    Looking at buying my next PPOR in a trust, house will be lived in for approx 5 years then either demolished and build a new house, or sub divided and build 2 and sell one or both.

    Any advantage in buying in a trust structure (and renting it back to myself on a long term lease) or do I just buy in my own name?

    Thanks in advance.

    (PPOR is in SA)
     
  2. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    @Matty77 - I am not a tax accountant. However my question would be - why would you not avail the CGT Free option on PPOR? You'd pay CGT if you are buying in a trust and "renting"
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,979
    Location:
    Sydney
    You have to consider all the issues and their effects. I guess you are thinking you may save tax in the long run by doing this but income tax is only one aspect to consider.