Selling old PPOR to Trust

[DebtEquity]

Hi can anyone please advise on the following and if it is still possible to do,

In the near future I would like to sell my existing PPOR to a Trust and borrow 100% withdrawing as much equity as I can on my new PPOR so I have a smaller non deductible debt.

Would I also put my new PPOR in the Trust and pay rent to the Trust while also paying down the P & I Loan as I want to pay down all the non deductible debt.

Does that make any sense and is the Interest borrowed 100% tax deductible on my old PPOR which is now a IP. Has anyone done it currently? and how did you go with finance approvals for a Trust set up.

If there was a shortfall on your IP did you use a LOC to cover it also?

what other strategies have others used.

Thanks for any advice

ps. What happend to Dazzling - the commercial property guru?

 

[Jonathon]

Wouldn't you pay stamp duty on the transfer? I see you're in WA, in Vic you would, and I can only assume it's the same in WA. (Although at least your rates are considerably lower than the exhorbitant rates in Vic)

Do you have a spouse you could transfer the property to, which I believe is stamp duty-free in WA.

Buying your new PPoR in a trust might make sense if you're at risk of being personally sued (eg if you're an accountant or lawyer in public practice) or you expect to pass the property on to your children or other relatives at some stage in the future. However, a trust can't claim the CGT exemption for a PPoR, only individuals can. This could get quite costly if you held the property for a number of years and then sold it for a considerable capital gain.