Hello,
First time writer, long time reader.
We are looking to set up a trust structure for our future IPs. (have one IP already but too late for that one.)
I have been advised to set up a Family Trust with a Company as the Trustee, and my partner and I been the directors of the Company.We are looking to buy IPs that are CF+ and hold, but also want to do renos to sell on.
Anyone with advise or experienced in this area would be appreciated.
Cheers
Wayneo.Hi Wayneo
Firstly welcome to the forum and I hope you enjoy your time with us.
It is something we do for clients regularly so can certainy speak with experience.
Personally i would look at 2 separate entities holding the properties you intend to buy, reno and sell on in a different structure to those that you are looking to retain long term.
Just make sure you loans are set up correctly and try avodi cross collaterlaising the securities as that will cause you problems down the track if you want to retain equity in a security that has sold.
Richard Taylor | Australia's leading private lender
I would ask your advisor why they want two people as directors. This only carries added risk without any obvious benefits. It may also hurt your long term loan borrowing prospects.
As Richard said it would be good to keep the buy and holds and renos in a separate entity due to the different tax treatment.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Richard and Terryw
Sounds like i need to do some more homework before I get set up.
Cheers
Wayneo.Hi Wayne
I have sent you an email to answer your question.
Richard Taylor | Australia's leading private lender
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