PPOR debt reduction: Selling to one’s own trust

Discussion in 'The Buying & Selling Process' started by Valentino, 21st Oct, 2018.

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  1. Valentino

    Valentino Well-Known Member

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    21st Aug, 2016
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    NSW
    I just read the most interesting Terry W post - selling a property to a trust and then using the proceeds to pay off non tax deductible debt, here: Should I sell my IP to pay PPOR mortgage?

    We have a big debt on our PPOR, but our IPs are CF neutral. They have done really well and we don’t want to sell. But the PPOR loan is too big. Cashflow is the problem. Obviously: earn more. But is there smarter ways to set up the debt so we can somehow effectively reduce PPOR debt and load it onto the IPs???Would it work to sell the PPOR we are actually still living in, to a trust and use the proceeds to ... to do what????
     
    Michael Mitchell likes this.
  2. Terry_w

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

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    Depends what you mean by work. It is possible but may not necessarily be a good idea.
     
    Michael Mitchell likes this.