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Trust and PPOR

Discussion in 'Real Estate' started by muppie, 5th Sep, 2005.

  1. muppie

    muppie Member

    Joined:
    8th Aug, 2005
    Posts:
    5
    Hi, what is the best way to have a PPOR, should I get it in a trust and me renting it from the trust?

    I will also subrent part of the house to my company as an office.

    I am probably also eligible for FHOG so whether I should take it or buy through the trust?

    Suggestions?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    What are your long term plans for the property ? Do you intend to live in it long term ? Do you intend to sell it at any point ? Would you think you'd still be living in it when you sell it ?
     
  3. muppie

    muppie Member

    Joined:
    8th Aug, 2005
    Posts:
    5
    Hi Sim, That is so hard to answer. I really don't know what I will do long term to it. I suppose if I have a good fortune in the future I may move to an even better house.
     
  4. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Muppie
    You must be very careful when making this decision.

    No CGT exemption if you sell
    In NSW - land tax will apply from the first dollar
    no FHOG
    No stamp duty exemption if property is less than $500K

    losses will be trapped in the trust

    Cheers
    NickM