Here's the scenario:
High income earner and low income spouse wish to purchase IP in Western Sydney. Price around $350k, rents for $300pw, granny flat addition possible later on.
Hopefully the property will start close to cashflow positive and will be cashflow positive in future. The loan may be paid down quickly. Unless interest rates rise there will not be a huge tax refund from negative gearing.
What is the best ownership structure for this IP:
1) Family discretionary trust (need to create)
2) Owned by high income earner
3) Owned by low income earner
4) Shared ownership
High income earner and low income spouse wish to purchase IP in Western Sydney. Price around $350k, rents for $300pw, granny flat addition possible later on.
Hopefully the property will start close to cashflow positive and will be cashflow positive in future. The loan may be paid down quickly. Unless interest rates rise there will not be a huge tax refund from negative gearing.
What is the best ownership structure for this IP:
1) Family discretionary trust (need to create)
2) Owned by high income earner
3) Owned by low income earner
4) Shared ownership