JV with a friend on our own properties

Property 1:
Title 100% under his name
Loan 100% under his name

Property 2:
Title 100% under my name
Loan 100% under my name

We have 50% "interests" on each others' property.
He will contribute to 50% of all outgoing of my property.
I will contribute to 50% of all outgoing of his property.
He can reap 50% of the capital gain of my property when it sells.
I can reap 50% of the capital gain of his property when it sells.

Can this be done with some legal documents that protect our own rights?
Maybe we need to register a caveat on each other's land title?

 

As opposed to just each of you buying a property? Whats the point here?

 

But WHY?????

Do you both want to brag about owning 2 properties rather than 1?

 

Yes but it will trigger cgt and duty

 

1. To simplify loan application
To lenders, clean title

2. To strengthen friendship
That's what he said

 

If he has no spouses or kids I would be strengthening it as much as possible

 

No spouses, no kids.
That's why I really want to strengthen as quickly as possible.

Would you or Paul@PFI be able to help (meet & discuss) in this regards?
He is free in next 2 weeks and is willing to pay for professional services.
I told him that I will introduce some excellent financial planner to him.

 

Might as well ask for that power of attorney while you are at it.

 

i'm confused whats the objective of this? to increase borrowing power? :s / save on land tax?

 

I've sometimes wondered about a scenario where 'friends' own the houses where the other person lives. What the tax benefits would be, but of course, your lose out on the PPOR CGT discount.

 

Only go into a JV with friends that are expendable, in my opinion.

I'll also echo what everyone has been saying: Why?

 

I can think of lots of ways to strengthen a friendship, buying property together is not on that list, it's on the "how to ruin a friendship" list...