Hi All I would like some advice please, I own 2 houses, one under my personal names, one under my family trust, both houses together have DA approval to develop boarding house ( build to rent) , the trust have trustee company which will be the applicant for finance application, my question is if the ownership of both houses remain the same, and can development be joint venture between myself and the trust? is there any issues need considered? thank you , much appreciate for all feedback hhd
Actual you own one property. The trustee of trust owns the other. I would be seeking legal and tax advice (perhaps from same person) about your issue. How is the partnership to be recognised? (JV isnt a tax or legal concept) and how does liability arise ? I would suggest the new partnership needs a ABN and tax file number for issues not readily apparent to you yet which relate to GST and NSW laws concerning boarding houses. You may have two boarding houses? Typically a "boarding house" is a building on a title. But you seemingly have two titles ? There is a GST issue here. On completion how is the trust property and that of the personal property kept distinct with a supply between each entity to a partnership ? Duty issues ?
From a lending perspective this is going to be classed as commercial and not many commercial lenders like Boarding Houses so that's something to consider at the front end before you go further.
thank you for all replies, I have DA approval to develop one boarding house on 2 lots, now in the process of finance. if the trustee of the trust is the operator of boarding once it is built, do I need to transfer my property to the trust or is there other better way? thank you hhd
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