I would like to get some opinions on a structure set up of a property I would like to purchase.
My situation, I have a PPOR and two investment properties. All are mortgaged with the same lender. The two IP are in my name and the PPOR is in mine and my wife's name, in Tenants in Common (we purchased not long after getting together).
I would now like to purchase a property with a family member. I know the rules about business with friends and family and in this case I'm prepared to take the risk as this family member will be living in the property, is essence I would like to go halves with her in a villa. The villa's I'm looking at are about $500K, the family member will have half of the money in cash and I intend to borrow as much as I can towards this. We will come to an agreement and the family member will pay half of the normal rent.
The family member is elderly and when they become deceased they wish for their half of the property go to my wife and I. This is very important as unfortunately she is also connected to people who are oxygen thieves and welfare cheats and I can see things getting messy down the track.
I would like some advise how this should be structured. There are several options that I see how this could be structured.
1. Put the property in my name, my wife's name and her name and tenants in common. I will obtain a mortgage for our half of the property.
2. Set up a Family Discretionary Trust and have all three of us as the beneficiaries of the trust.
Can someone please give me some options as I'm probably on the wrong side of the garden path.
Thanks
My situation, I have a PPOR and two investment properties. All are mortgaged with the same lender. The two IP are in my name and the PPOR is in mine and my wife's name, in Tenants in Common (we purchased not long after getting together).
I would now like to purchase a property with a family member. I know the rules about business with friends and family and in this case I'm prepared to take the risk as this family member will be living in the property, is essence I would like to go halves with her in a villa. The villa's I'm looking at are about $500K, the family member will have half of the money in cash and I intend to borrow as much as I can towards this. We will come to an agreement and the family member will pay half of the normal rent.
The family member is elderly and when they become deceased they wish for their half of the property go to my wife and I. This is very important as unfortunately she is also connected to people who are oxygen thieves and welfare cheats and I can see things getting messy down the track.
I would like some advise how this should be structured. There are several options that I see how this could be structured.
1. Put the property in my name, my wife's name and her name and tenants in common. I will obtain a mortgage for our half of the property.
2. Set up a Family Discretionary Trust and have all three of us as the beneficiaries of the trust.
Can someone please give me some options as I'm probably on the wrong side of the garden path.
Thanks