Can I buy my first home and place directly into the family trust?

Our Experts Answer:

Absolutely you can purchase your first home in a family trust. The Trust could borrow the funds if required also. As in the case of many alternative ownership or borrowing entities you may be required to personally guarantee a loan in the name of the Trust (or if you borrow the funds personally the Trust will need to guarantee your borrowing facilities). Guarantees are usually taken to secure the Bank's lending facilities or to tie in income streams which services any borrowings. Should you be looking to convert this proposed property from an owner-occupied one, ie. your own house to a rental property in the future I would strongly suggest that you seek your accountants and your solicitors advice first as a family trust structure in the future may not be the best ownership or borrowing structure for you for an investment property. If you have any further questions at all, please do not hesitate to contact me directly.

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Roger Swift has been in the finance industry for over 20 years both domestically and internationally. Banking experience includes Corporate and Business banking portfolio management, Structured Finance, International Trade Finance, and retail banking (primarily in the home loan market). Personally he has been involved in residential property investment for over 16 years and well versed in asset and tax structuring both from a professional and personal point of view. Call him sometime.

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