Calling all couples..... how are your finances structured?

So, hubby and I have bought a PPOR in joint names. Unfortunately this has messed around with our serviceability for buying in sole names (because we are each responsible for our PPOR debt) so we will be able to buy more IPs if we buy them as tenants in common (according to our knowledgeable broker)

For the negatively geared properties, my husband (the higher income earner) will own 99% and I'll own 1%.

For positively geared properties, it will be the other way round as there'll be a few years that I'm not working (bubs), and then probably only working part-time after that.

Anyone else have this approach?
 
For the negatively geared properties, my husband (the higher income earner) will own 99% and I'll own 1%.

What's the plan for the property?.

e.g. if you are planning on selling the property after it has grown X, your husband will end up paying more CG since, he is the higher income earner. However, if you are not planning on selling it then, the share structure is ok.
 
Sorry, I forgot to mention that we are all for buying and holding long term.

I read a lot in API about how couples should buy as sole owners.... first one than the other..... but it just doesn't work for us!
 
Yes, this is us. For better or worse! :D

If I had the chance to go back and do it again, I'd do it a little differently, coz even for the IPs in 1 name, we had to go TIC 1%/99% due to a combination of servicability and security requirements.

Our x-coll is a mess and we'll definitely be trying to tidy it up during the next re-fi.

With 1 or 2 IPs it was fine, but as we got past that it's worse. Record-keeping is fine, but trying to get new finance - NIGHTMARE!
 
Lol, for better or worse indeed!

So, with the benefit of hindsight, what should we have done instead? NOT bought our PPOR in joint names?? (Then again, we wouldn't have been able to afford it, had it only been in sole names!)

I'm really hoping it won't get messy by IP #3, #4 etc too. Definitely staying away from X-coll. Main concern is about meeting serviceability every time we want to buy an IP!
 
OK, maybe I should have phrased that as "want to have done it differently" Not sure if we could have and maybe we just need to appreciate where we are and work out how to unravel it when the time comes.

We each had 1 IP when married, then bought 1 jointly soon after prior to PPOR. Only way to get PPOR was jointly (she was knocked up). Then I sold my IP.

Our next one, I needed her IP as part security, so she had to go on title (1%)... and so it goes on!!

Now we have a bit of equity in a couple, we may be able to re-fi some of them to standalone to make it neater.
 
Get the PPOR debt changed over asap and should be alright then with no debt on it :)

By changed over I mean this:

Take all rent and put on PPOR offset.
Get a LOC on IP's and use this to capitalise IP interest

This effectively pays off your PPOR and increases tax ded. debt :)
 
We have my old house in my name only as I had all the assets when we met, the house we live in now is 50/50 joint and the one we are building will be 50/50 as well. In a few years we'll build ourselves the 'dream home' and that will also be 50/50 and all the others will be either IPs or sold. We also have a 50/50 joint business, which puts me the higher earner by default as I have rent coming in under my name only. 50/50 works for us as every house we have, if rented out, would be very heavily positively geared. If sold, any CGT gets split equally between us.

Our finances are basically set up in an attempt to get passive income so we can work without pay for a few years without starving. By the end of this year we should be in that position, which for most mortals would be "retirement". Yay!
 
Lol, for better or worse indeed!

So, with the benefit of hindsight, what should we have done instead? NOT bought our PPOR in joint names?? (Then again, we wouldn't have been able to afford it, had it only been in sole names!)

It's an interesting point, we'll be facing similar situation in couple years. Buying together should get us the PPOR on DSR, by myself don't think I'll quite make it. But then don't want the same debt on both our heads.

Wobby, I'm assuming with TIC that even though it's 1/99% split, they still consider 100% of the debt for the partner with 1% ownership?
 
Wobby, I'm assuming with TIC that even though it's 1/99% split, they still consider 100% of the debt for the partner with 1% ownership?

Correct. Due to x-coll and TIC, we're sharing debt and serviceability measurements - we're a team! - but the tax deductions are obviously according to ownership %age.

This locks us in to our current lender, but means that access equity for the "next one" should be relatively painless... assuming we can use the same lender! As soon as we need to go to another lender - watch out!!
 
Top