Hi all,
I have been reading all the posts on trusts and have another question about putting a PPOR in a trust and paying rent. I understand the idea is to pay market value as rent. But I was wondering since you need positive cash flow in a discretionary trust, can you pay more than the market value rent. Eg say you would normally rent the property at $200pw could you pay yourself rent at $250pw to make it cashflow positive. Any negatives or positives?
Roz
I have been reading all the posts on trusts and have another question about putting a PPOR in a trust and paying rent. I understand the idea is to pay market value as rent. But I was wondering since you need positive cash flow in a discretionary trust, can you pay more than the market value rent. Eg say you would normally rent the property at $200pw could you pay yourself rent at $250pw to make it cashflow positive. Any negatives or positives?
Roz