new trust/SMSF question

[Ecogirl]

Hi guys
My parents have a SMSF with ppty held in trust. They have located a rental house that they would like to purchase (in Qld) but only have half the $ to buy the house. They have approached me to see if I am interested in purchasing half the house.

I am setting up a trust to protect all my future IP acquisitions. My question is: Can my trust own only half a house or does it have to buy the whole lot? Can their SMSF only buy half a house?

PS Obviously if we decide to purchase the ppty we will get a solicitor to draft the agreement and how the ownership is structured. We have time up our sleeve to make an informed decision and we would seek independent advice as well - but if it isn't possible we need to make alternative arrangements.

Thanks Ecogirl

 

[DaleGG]

Hi

Yes, your trust can buy a 50% interest in the property. However, your parents might need to get specific advice as their SMSF cannot allow the property to be security for your loan.

Dale

Hi guys
My parents have a SMSF with ppty held in trust. They have located a rental house that they would like to purchase (in Qld) but only have half the $ to buy the house. They have approached me to see if I am interested in purchasing half the house.

I am setting up a trust to protect all my future IP acquisitions. My question is: Can my trust own only half a house or does it have to buy the whole lot? Can their SMSF only buy half a house?

PS Obviously if we decide to purchase the ppty we will get a solicitor to draft the agreement and how the ownership is structured. We have time up our sleeve to make an informed decision and we would seek independent advice as well - but if it isn't possible we need to make alternative arrangements.

Thanks Ecogirl

 

[Ecogirl]

Dale
What about if I set up a hybrid trust and I bought the ppty in that trust. Can their super then buy units in that trust to the $ value they want?

(I was reading your book last nite and it mentions that trusts can buy units of another trust - but not sure about SMSF.)

I was wondering approx how much does it cost to set up a corporate trustee and a hybrid trust? What are the approx ongoing costs per year?

Thanks
Ecogirl