Hi
Im new to this forum so hopefully my questions make sense
We are planning on buying a property to live in (we already have 2 properties one is rented out and the one we live in we plan to rent out)
I have been investigating buying the new house through a trust so that we can negatively gear it.
My partner is skeptical about it and says if it was a good way to buy a house why isn't everyone doing this?
Through my investigations i found that the negatives are:
1) you have to make sure the trust is worded in such a way that it allows for negative gearing and it has to be a hybrid trust? (im not too sure about this yet)
2) You have to pay Land Tax and CGT
3) There are the high set up fees and ongoing annual account keeping fees
3) Extra paper work at tax time and i guess throughout the year
My main question is does anyone own properties through a trust and has found it to be a positive and worth while experience?...if not what are the traps?
Thanks in advance
Im new to this forum so hopefully my questions make sense
We are planning on buying a property to live in (we already have 2 properties one is rented out and the one we live in we plan to rent out)
I have been investigating buying the new house through a trust so that we can negatively gear it.
My partner is skeptical about it and says if it was a good way to buy a house why isn't everyone doing this?
Through my investigations i found that the negatives are:
1) you have to make sure the trust is worded in such a way that it allows for negative gearing and it has to be a hybrid trust? (im not too sure about this yet)
2) You have to pay Land Tax and CGT
3) There are the high set up fees and ongoing annual account keeping fees
3) Extra paper work at tax time and i guess throughout the year
My main question is does anyone own properties through a trust and has found it to be a positive and worth while experience?...if not what are the traps?
Thanks in advance