Let me think this through.
Hubby is borrowing 100% of purchase price to borrow what? To buy shares.
The company then lends the money to a trust which pays cash to purchase a property.
The shares would be income producing because?
Also to borrow the money what is the security? It would have to be the property, so you would have the property owned by trustee Z but want the loan in the name of Mr Hubby. This will cause problems like the hybrid trusts. Could be done though.
?
Thanks you for your thoughts everyone. Lots to think about
I am looking at all things mentioned, but just on these two points
I believe that the expectation of income is because the company is a beneficiary of the trust. It would get an income after a number of years. Probably the plan is once I get taxed at >30%. I think I heard once though that dividends get taxed twice. Once on way out and again as income for shareholder?
I'm a bit unsure about the second point above. Isn't that always the case when buying in a trust?