Agreed tpi. If a structure means the difference between owing a property and not then of course it would be better to have it in your own name. I recently discussed this with a client where the lender wanted a 10% deposit which would take them a year to save and we both agreed it was better to purchase the property in their own name to get the property.
many people have equity in their own home or in other ips and so the ability to obtain finance isnt an issue.
many of our clients prefer residential property over shares or commercial so the ability to move it into super and have a tax free rental income stream is attractive for them. There are many strategis to reduce or even eliminate the cgt on sale or transfer so cgt is a planning exercise.
disagree re the refinancing principle not being a significant benefit. Had one client refinance for the unit trust to redeem the units and used the 300k to upgrade their main residence. 300k of tax deductible debt. At 6% per annum thats 24k of interest as a tax deduction vs 24k of non deductible interest. At a tax rate of 30% thats approx a 7k tax saving per annum. 35k over 5 years. So disagree.om that point.
depends what your goals are and i always tell clients the pros and cons and at least they know all the facts and can then decide what structure is best for them. We have many clients with properties in their own name and for their circumstances it is the most appropriate structure.
We arent interested in putting clients into structures that arent right for them. We just give all the facts and at least that way they can make an informed decision.
many people have equity in their own home or in other ips and so the ability to obtain finance isnt an issue.
many of our clients prefer residential property over shares or commercial so the ability to move it into super and have a tax free rental income stream is attractive for them. There are many strategis to reduce or even eliminate the cgt on sale or transfer so cgt is a planning exercise.
disagree re the refinancing principle not being a significant benefit. Had one client refinance for the unit trust to redeem the units and used the 300k to upgrade their main residence. 300k of tax deductible debt. At 6% per annum thats 24k of interest as a tax deduction vs 24k of non deductible interest. At a tax rate of 30% thats approx a 7k tax saving per annum. 35k over 5 years. So disagree.om that point.
depends what your goals are and i always tell clients the pros and cons and at least they know all the facts and can then decide what structure is best for them. We have many clients with properties in their own name and for their circumstances it is the most appropriate structure.
We arent interested in putting clients into structures that arent right for them. We just give all the facts and at least that way they can make an informed decision.
