GDay,
I am thinking of putting proposal to my old man, basic outline is:
Pro's for me: Only loans I will be able to get next are no-doc but want to go higher LVR's and this way I can. Get exposure I wouldn't be able to get without him. We will also benefit from more tax benefits with loan in his name.
Con's for me: Lose a chunk of my capital gains however it is gains I wouldn't have been able to get otherwise.
Pro's for him: he has no money involved, no interest to pay, and is entitled to a proportion of the cap gains after a set time.
Cons for him: are that he would be legally liable if the loan defaults. However I think I could convince him as he has a chunk of my assets in a trust with him as trustee and appointer!
Anyone done anything similar or got any thoughts? May also throw some things in such as an option for him to extend, a portion of income if becomes +vely geared.... depends on how he takes the idea without those
Cheers for any feedback/ideas
I am thinking of putting proposal to my old man, basic outline is:
- He gets a loan in his name
- I purchase an IP in my name
- I pay ALL the costs and interest
- The tax savings that he gets from deductions go back to me for interest
- At the end of a period (eg 7 years) he is entitled to 25% of the equity that has built up as a lump sum payment, tax free.
Pro's for me: Only loans I will be able to get next are no-doc but want to go higher LVR's and this way I can. Get exposure I wouldn't be able to get without him. We will also benefit from more tax benefits with loan in his name.
Con's for me: Lose a chunk of my capital gains however it is gains I wouldn't have been able to get otherwise.
Pro's for him: he has no money involved, no interest to pay, and is entitled to a proportion of the cap gains after a set time.
Cons for him: are that he would be legally liable if the loan defaults. However I think I could convince him as he has a chunk of my assets in a trust with him as trustee and appointer!
Anyone done anything similar or got any thoughts? May also throw some things in such as an option for him to extend, a portion of income if becomes +vely geared.... depends on how he takes the idea without those
Cheers for any feedback/ideas