From: Michael G
Peoples,
I am currently renting, but I also own a townhouse in the same suburb.
A thought in my mind currently is that it may possibly be cheaper to live in my own townhouse.
If I factor the interest on the loan, plus all the expenses, then it may be cheaper than the rent, well if I took into account tax deductions, then again maybe.
At the moment the property is in my name (and I'm single), and I think I have two options.
1) Remove the tenant, move in and pay the interest and costs.
2) Shift the property from my name into a family trust. I then rent the property from the trust, and being an investment in a trust the deductions flow to the beneficiaries.... me.
With option two, the downside is a possible stamp duty cost, due to it being an asset transfer, I'm not too sure about capital gains.
Besides, going to an accountant on this one (which I will), does anyone have any input on this idea?, has anyone done it before?, what problems/solutions did you uncover?
Regards
Michael
Peoples,
I am currently renting, but I also own a townhouse in the same suburb.
A thought in my mind currently is that it may possibly be cheaper to live in my own townhouse.
If I factor the interest on the loan, plus all the expenses, then it may be cheaper than the rent, well if I took into account tax deductions, then again maybe.
At the moment the property is in my name (and I'm single), and I think I have two options.
1) Remove the tenant, move in and pay the interest and costs.
2) Shift the property from my name into a family trust. I then rent the property from the trust, and being an investment in a trust the deductions flow to the beneficiaries.... me.
With option two, the downside is a possible stamp duty cost, due to it being an asset transfer, I'm not too sure about capital gains.
Besides, going to an accountant on this one (which I will), does anyone have any input on this idea?, has anyone done it before?, what problems/solutions did you uncover?
Regards
Michael
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