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  • NZ Property Investor

    STRUCTURE SUCCESS

    Apr 29, 2020 6 minutes

    Q I currently have a rental property in a look-through company (LTC) with a mortgage maturing in eight years. I top this up out of my salary. I live in my own home freehold which is in a trust under my name. I don’t plan on selling either of these houses within the foreseeable future (possibly retirement 20 years away).

    I have a new partner and we are planning on purchasing a house together, 50/50 for our blended family to all move into. We would be borrowing 100% using the equity we have in both parties’ houses. I pay child support direct to IRD if this has any bearing on my question.

    My question is in relation to tax structure in particular for me (trust/LTC). I plan on raising the equity to afford my borrowing against both my properties. Are there any tax loopholes or traps that I could fall into? Is it better to keep my structure the same and borrow equal amounts from the

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