Forum Replies Created

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of dave.murphydave.murphy
    Member
    @dave.murphy
    Join Date: 2008
    Post Count: 9
    January 11, 2008 - 12:33 am

    Terryw, thank you for your input.
    Other reason considering Chan&Naylor's Property Investor trust, is that I can pass on the assett ownership to other people without triggering CGT and stamp duty, and still has land tax treshold (except NSW), while has no vesting date.

    So, I think I will consider lower value property / low growth to be allocated under personal name, and higher value (for example >$1M) under trust.

    Profile photo of dave.murphydave.murphy
    Member
    @dave.murphy
    Join Date: 2008
    Post Count: 9
    January 9, 2008 - 6:01 am

    John,
    As far as I can understand it so far, Discretionary (or often called Family Trust) offers assets protection, and allows you distribute income to members (beneficiaries) esp to the lowest tax brackets.  In regards to property, it doesn't allow individual to benefit from negative gearing as the losses are trapped inside the trust.

    This is where the hybrid trust kicks in, as it has the income unit where one may claim tax losses on negatively geared property, so the losses is not trapped in the trust -> Tax Benefit -> More money in your pocket on tax time.

    Profile photo of dave.murphydave.murphy
    Member
    @dave.murphy
    Join Date: 2008
    Post Count: 9
    January 9, 2008 - 5:03 am

    Richard, that's for the insight.
    So what would be the best trust for Negatively geared property?

    Dave.

    Profile photo of dave.murphydave.murphy
    Member
    @dave.murphy
    Join Date: 2008
    Post Count: 9
    January 9, 2008 - 4:39 am

    I see…
    So is Chan&Naylor's "Property Investment Trust" is viewed as "Hybrid Trust" by major banks?

    Hope someone from Chan&Naylor's can answer this…?
    Is this the bottom line why it's harder to get finance, while you guys can get finance on Hybrid Discretionary Trust?

    Dave.

    Profile photo of dave.murphydave.murphy
    Member
    @dave.murphy
    Join Date: 2008
    Post Count: 9
    January 8, 2008 - 11:19 pm

    Hi Jon, Richard, Scarecrow7,

    You know what, I spoke to ANZ mortgage specialist on Nov last year requesting to get a quote.
    After speaking with their supervisor, he ended up saying "sorry we can't do it if it's under trust structure for 80% LVR" ??!!
    He might be still be able to help me though if I'm willing to put a certain amount of funds on ANZ Term Deposit in conjuction of the loan, but I said no, because I am trying to put down my own money as little as possible!!

    Just for a comparison, may I know how much is your interest rate with ANZ Jon?
    (I am expecting around 8.6% with these non-bank lenders)

    Scarecrow7, I somewhat agree with you
    But considering the long term view as the property price will increase over time, I would also like to structure it right from the first time to avoid costly mistakes in the long run.

    Dave.

    Profile photo of dave.murphydave.murphy
    Member
    @dave.murphy
    Join Date: 2008
    Post Count: 9
    January 8, 2008 - 7:45 am

    Hi Jon,

    May I know what type of trust you use for your property?

    I have also spoken to 2 different brokers but they won't be able to get me major bank loan mainly because:
    1. The property will be in Trust structure
    2. It's 80% LVR
    3. It's Low Doc / No Doc

    If anyone can suggest which bank, I would really like to know so I can consider when I am purchasing my next IP (or should I contact you Jon? :) )

    Thanks.

    Dave.

Viewing 6 posts - 1 through 6 (of 6 total)