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First home in Family Trust

Discussion in 'Introductions' started by rajiv, 8th Sep, 2008.

  1. rajiv

    rajiv Member

    Joined:
    16th May, 2008
    Posts:
    16
    Location:
    Perth, WA
    Can I (and more importantly should I) buy our first home in the family trust. We both work and are in high marginal tax rate. We have 2 children. Thanks for the responses in advance.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Several reasons why not:

    1. you won't get FHOG
    2. you will have to pay CGT when you sell
    3. if you move out but keep the property as an IP, there will be no negative gearing benefits

    The only reason you would probably want to do this is for asset protection - but if you aren't in a high risk profession or a business owner / director, then there's possibly no need.
     
  3. rajiv

    rajiv Member

    Joined:
    16th May, 2008
    Posts:
    16
    Location:
    Perth, WA
    Thanks Sim

    Thanks Sim for your response...