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how long do you want to hold the properties?
what sort of trust are youlooking at?
if it is a simple family trust or a simple trust, there are no drams now and in the future…..
BUT, why are you looking to go for a trust? are you likely to be sued through your profession at all, or is it for tax purposes recommended by an accountant? as this sometimes gets you left with the option of only one or two lenders that will lend. So you will need to get some advice on this. Also, when doing a development, your rates will differ anyway. so dont get bogged down on 'pro packs' or whatever, just get a good deal!!!
if you would like more help let me know….
PFor holding it more that 12 months the discount CGT metod will apply. You will have to pay tax on 50% of any profit, that will then in turn be taxed at your rates for the year.
please ask if you need more info….
PA few things to consider…..
are you looking to hold these until you retire?
have you thought of the tax implications?
the best tax haven for investment is your supperannuation. If you held your properties through super, then in the years to come when you retire you will pay no tax!!!! and in the mean time only pay 15% rather than your marginal tax rate. HOWEVER!!!! this needs to be structured correctly, as you cannot borrow in Super. This is a field that I specialize in.Then, where and how much?
one option is ( i will talk Sydney just for arguments sake)…
If I buy a brand new appartment, which will give me enormous tax considerations over the first few years, within a 10 km radius of the CBD at the average appartment price, ie $500k. Why? well in due time if i go to sell, this will still be at the average appt price, which will hopefully increase in years to come. why that radius of 10 km?well, in sydney the avg appart price is $500k…. in the same areas the avg home prices can be around the $1mill mark, so a good option as it means i have an exit stategy if i need to sell, as a first home buyer wanting thisd area has only one eye on that price range. Whereas if i gi further out ie Parramatta, avg appt price is still $400, but avg house price is $500k…. therefor exit strategy means that the buyer will also have an eye on a home 'for a little bit more'……..
just a bit for thought…..
PCash flow positive….? When investing in real estate, does one ask why? are you investing for long term growth? so a buy and hold?
If this is the case, why are you looking for CF+. are you employed? if so, you have your CF there, you have an income. Any decent property these days will not be CF+. Unless you go to a rural centre. Do you live there and know the area? would you be an owner occupier there?
so then how long will it take to sell the prop? if you can sell it. Remember as well, in chasing CF+, you will be probably be forgoing capital growth, which means if that is the case, after holding costs and expenses etc etc will you have made money? afterall that is the idea of an investment, otherwise it is infact a liabilty…….
