Note- The following information is for general information purposes only.
Speak to your accountant before doing this.
"At arm’s length”‘
At arm’s length” is a clause investors have used to rent properties themselves, in a round-about way.
You firstly need to own the property in a trust structure and you would be the beneficiary of that trust.
This means that if money comes to you, as a beneficiary, you can pay yourself.
The trust would then lease the property to a company and you may choose to be the director of that company.
Ultimately, the trust would be leasing to a company, as opposed to you leasing to yourself.
You also, will not get negative gearing benefits when you own a property in a trust structure, even if you own it in a trust and you’ve got a company that is paying that trust.
It is the trust that owns the property and you will be the beneficiary.
Ultimately,you don’t own the property, the trust owns it.
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Saturday, 11 May 2019