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Sell PPOR to Trust

Discussion in 'Investing Strategies' started by Triu, 4th May, 2007.

  1. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Is it a good idea to sell my PPOR to my Trust then rent back from the Trust? An invest the money in Shares and Managed funds. As the money would be tax deductible it would free up more capital to invest.

    Any ideas or comments and direction, please am learning alot from you guys!

    thanks:D
     
  2. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    The biggest major issue with this is you will lose your main residence CGT

    other issues are land tax, some states will charge land tax if it is held inside a trust even if it your PPOR, (some give you a reimbursement). Stamp duty again will be have to paid, mortgages re issued, limited ability to use an offset account

    plus the market rate/rent and arms length transactions...

    unless your of a profession likely to get sued i wouldnt try to do it...
     
  3. PiggyBank

    PiggyBank Member

    Joined:
    16th Aug, 2005
    Posts:
    13
    This is only possible under certain conditions - if your trust is able to borrow and buy the PPOR off you. If its an HDT variety and you are negative gearing its not allowed and the ATO will coming knocking your ppor door ...

    PB