HiHad a busy Sat looking at properties, and just stayed away from the computer on Sunday. Had a much more positive meeting last Friday afternoon with another accountant over the setting up of a Family Trust with Corporate Trustee.This accountant does not invest in property, but deals with plenty of property investing clients who utilise DTs with…[Read more]

Hi, Richard Thanks for the quick response. I am asking because I am going off to meet an accountant tomorrow, so I wanted to be as sure as I possibly can.My other question would be:If we proceed with a DT with Corporate trustee, are Full doc loans still accessible to us? Or do we have to resort to Lodoc loans and their higher interest rates to get…[Read more]

Hi, might I also add that I am also looking at a DT with Corporate Trustee to possibly utilise the 'Capital gains tax concession for small businesses – 50% active asset reduction' in an event of any sale of an IP and having to deal with capital gains. CheersDaniel

Hi, BenI posted this question on the thread below, but thought I do the same here to see if I get a different opinion. Maybe you can help me with this.https://www.propertyinvesting.com/forums/getting-technical/finance/4323242In your experience, is having a Family Trust with my partner and I as the trustees sufficient for the purposes in which the…[Read more]

HiInteresting topic, as I am working on finding an accountant to help me with a DT with Corporate Trustee.Can someone advise on this…If my partner and I set up a DT with a company as the Trustee, and us as Directors in the company, then when it comes to getting the banks to lend to the company, can we still borrow up to 90% LVR? Or are we…[Read more]

Hi, TerryYes. I am beginning to see the different styles and degree of understand of some accountants. Was thinking to myself that I really feel sorry for the investors who use the accountant that I met with yesterday. Was telling the wife last night that we really need a clued-up accountant, because we take our investing very seriously and…[Read more]

Well… had my meeting with the accountant. Was not really impressed, and felt that at times, I knew more than him when it came to property investing. To put it simply, he advised against a DT and said to just go with buying in our own names. This is what he said…1 – Asset protection: Who is going to sue you? What are the chances of that?2 -…[Read more]

Hi, TerryThe 2 accountants that I am meeting this week are not charging me. The accountant I am meeting today said a free half-hour initial meeting to see if he can help, and the second accountant that I am meeting on Friday said a free first hour meeting. To speed things through, I type out a summary of my investing strategy, and how I intend t…[Read more]

HiHope everyone has had a good break throughout the festive season.Thought I give an update to this thread by informing that I am meeting up with 2 accountants this week to discuss about a Family Trust.On another note, I definitely have to look at SMSFs in the future.RegardsDaniel Lee

Hi, TerryThanks again. Have the LOC for investment only and live off the rental and personal income.Guess more investigating for me on this, not that I will have to deal with excess equity for years to come.CheersDaniel

HiI was actually looking for a topic like this. I read Michael Yardney's book about living off the equity. Was wondering:1 – Are you about to use the equity for both invesment and private use, and still be able to differentiate the purpose of the loan for tax deduction purpose?2 – What do you offer as security? PPOR or IP? Would that not affect…[Read more]

Hi, JoyceI have no idea how much C&N would charged over the average accountant to do the returns for individuals with IPs, or tax returns for trust. Then again, I have no other reference to compare against. That is another reason why I am planning on meeting another accountant, to get a difference point of view on the feasiblity of a trust for us,…[Read more]

Hi, BenWould it not be expensive to have one property per trust only?I spoke with another accountant with experience in dealing with property investors, and he advised me to write everything that I wanted to use a trust for down, so that we can go through the feasibility of a DT after the new year. Already, I am looking forward to that…[Read more]

Hi, Dan42: I always thought that Capital Gains could be offset again Income losses. I will confirm this with the Accountant. To be able to offset income loss again capital gains would be very nice, indeed. The Accountant gave me a price list and said that to do the accounts for a Trust, the cost will be from $1000 onwards. Time for me to start…[Read more]

Hi, TerryThanks for informing that the income losses can only be offset against other income. That is still alright. Have a large CG will have it all worthwhile.That was our point initially, that if you almost never make an income loss, than a DT would make perfect sense.Will check out about setting up a DT and company myself.RegardsDaniel

Hi,After re-reading the opinions and comments of many who responsed, I thought about the Discretionary Trust once more. It finally made no sense to me to be concerned with a few thousand in cashflow loss from not being able to claim the interest deductions and depreciation.My partner and I discussed about the use of a Family Trust with Corporate…[Read more]

Hi, EveryoneThis is the cost pricing I have been given by the accountant.Tax returns for individuals: From $150 + $100 per investment property per yrTax return for Trust / company: From $1000 upwards per yrSet up of Family trust without / with Corporate Trustee: $2200 / $1000Yr 1 with a trust, the running cost for us will be from $1300 (2…[Read more]

Hi, HocCheck out the link. I added my latest post just a few mins ago.Had a pretty interesting discussion with the accountant.RegardsDaniel Lee

I spoke with the accountant, and was advised to not bother about a trust. The factors leading to that decision were:1 – Many lenders do not understand the various types of trust available and are very wary of lending to anyone in this current climate. We would only find one lender willing to deal with a HDT, and even they limit LVR to 80%;2 – Our…[Read more]

So, with a Hybrid Trust and a Unit Trust, the units themselves become assets and are open to creditors. With a Discretionary Trust, you are free to distribute the profits to any beneficiaries, but depreciation and deductibility of interest is held within the Trust.What then makes a Trust worth the short to medium term pain. Eg: most properties…[Read more]