I've been feeling frustrated that the Brisbane market is moving, and have wanted to use our family trust loan to buy another house. Anything we buy in our preferred local area will be negatively geared, which is not what we want.
So... we're investigating splitting the double block we have and instead of two houses rented, we would build two new houses in the back yards, giving four houses rented.
This works mostly due to building on "free" land and rent from four houses will turn this negatively situation into positive territory.
These blocks are in hubby's name but our plan is for me to buy one block (and pay the duty involved) which will be recouped in just two years due to the saving in the land tax that would be paid if they stay in hubby's name.
We will pay capital gains tax but that will never be paid twice, so I don't mind that. We also gain flexibility if we sell down, and can spread the sales to minimise capital gains tax.
There are costs involved, but the benefits are worthwhile.
It means we both would be earning rent from two houses which also suits us now we are not "working".
Is there anything I might be missing? Any downside to transferring one house into my name that I've missed?
So... we're investigating splitting the double block we have and instead of two houses rented, we would build two new houses in the back yards, giving four houses rented.
This works mostly due to building on "free" land and rent from four houses will turn this negatively situation into positive territory.
These blocks are in hubby's name but our plan is for me to buy one block (and pay the duty involved) which will be recouped in just two years due to the saving in the land tax that would be paid if they stay in hubby's name.
We will pay capital gains tax but that will never be paid twice, so I don't mind that. We also gain flexibility if we sell down, and can spread the sales to minimise capital gains tax.
There are costs involved, but the benefits are worthwhile.
It means we both would be earning rent from two houses which also suits us now we are not "working".
Is there anything I might be missing? Any downside to transferring one house into my name that I've missed?