My partner and I jointly owe $100k on a $500 property (NO1) which is currently our PPOR. We aim to keep it and turn it into an IP if we can restructure financing/equity (another thread)
We have found a property (NO2) that we wish to move to and have purchased with paperwork to be finalised this week.
As the 2nd is in a rural area we expect that it will have less scope for capital appreciation that NO1.
Financing aside, we intend to keep NO1 as PPOR due to capital appreciation growth and intend to use the 6 year rule in case NO2 does not work as expected and may in year 5, evaluate possibilities to knockdown NO1 and rebuild, sell or continue on as is as IP.
As a company director, I am at risk and so believe that both properties should be in my partners name for asset protection purposes. (She is in top income bracket as well)
We have a discretionary family trust structure (company as trustee) in place that currently holds shares but has no immediate income.
Questions
/1 What are the negatives for keeping NO1 as PPOR when compared with alternative?
/2 What are the pros and cons for keeping NO1 as PPOR until year 5 and then making NO2 the PPOR?
/3 When should we do valuations?
/4 Who should own the NO2? Partner or Trust?
Best Regards,
We have found a property (NO2) that we wish to move to and have purchased with paperwork to be finalised this week.
As the 2nd is in a rural area we expect that it will have less scope for capital appreciation that NO1.
Financing aside, we intend to keep NO1 as PPOR due to capital appreciation growth and intend to use the 6 year rule in case NO2 does not work as expected and may in year 5, evaluate possibilities to knockdown NO1 and rebuild, sell or continue on as is as IP.
As a company director, I am at risk and so believe that both properties should be in my partners name for asset protection purposes. (She is in top income bracket as well)
We have a discretionary family trust structure (company as trustee) in place that currently holds shares but has no immediate income.
Questions
/1 What are the negatives for keeping NO1 as PPOR when compared with alternative?
/2 What are the pros and cons for keeping NO1 as PPOR until year 5 and then making NO2 the PPOR?
/3 When should we do valuations?
/4 Who should own the NO2? Partner or Trust?
Best Regards,