Trusts and First Home Buyers?

[Xplaya]

Hi there, so my mother owns a house, and we (Our Family, Her and Her Children) are thinking about putting this in a Family Trust to hopefully manage things alot better and not let everything fall on my mother e.g. Mortgage Payments, Renovations etc..

But 1 thing that crossed my mind lastnight as I too want to eventually own my own home, if I am on this trust, with the property under it, will this affect my First Home Buyer Perks?

[MikeO]

Hi there, so my mother owns a house, and we (Our Family, Her and Her Children) are thinking about putting this in a Family Trust to hopefully manage things alot better and not let everything fall on my mother e.g. Mortgage Payments, Renovations etc..

But 1 thing that crossed my mind lastnight as I too want to eventually own my own home, if I am on this trust, with the property under it, will this affect my First Home Buyer Perks?

My understanding is that yes it would as you would be holding an estate in land. I'm not a lawyer though. Definitely check with one before you go ahead.

[Bobsyouruncle]

Use a corporate trustee. Talk to your lawyer.

[Anthonyacat]

Strictly yes I am pretty sure having your name as a trustee puts your name on the title. Royally shafts many people who are trustees on family trusts, and totally unfair to those who were trustees before this rule came about, such as my wife.

In practice, I've been told by official sources that 'it depends on how your kiwisaver provider views it' which I think is a massive cop out, dancing around a serious issue. When (if) we decide to buy our first home, we will be changing her kiwisaver provider several times to see if any see the situation favourably.

On the other hand, you have a situation like my own, where I own multiple properties in a company, but have never had my own name on the title. Strictly, I am still a first home buyer should I choose to buy a PPOR. As I should be, really - after all, how is investing in property any different from investing in shares? But had I structured my investments differently, it would discount me.

[Xplaya]

Thanks bobsyouruncle will bring that up with the lawyer,
Interesting read Anthonycat thanks for the replies everyone