Buying a PPOR in a Trust

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

Join Australia's most dynamic and respected property investment community
  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)
     
    Matty77, 27th May, 2016
    #1
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    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"
     
    Property Twins, 27th May, 2016
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,943
    Location:
    Australia wide
    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.
     
    Terry_w, 27th May, 2016
    #3
Buy Property Interstate WITHOUT Buyers Agents!

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia