The holder of the shares would be the trustee of the trust. This would generally be another company or individual(s).

Disposal of shares by a trust would result in CGT and stamp duty in some states. As the discretionary trust must vest then this will result in the CGT down the track too.

There are an infinite number of ways (exaggeration maybe) to set something like this up. It will all depend on heaps of factors:
– individual circumstances
– which state
– stamp duty
– land tax
– your family situation
= asset protection issues
– succession issues
– degree of trust
– equity
– need to bring in more partners
etc
etc

If you are doing this as a business then no CGT, just income.

Parternship of 2 individuals may not be the best idea, depending on the circumstances.

Gibbs wrote:
Or do you refer to building docs and land docs? The land was a private sale nothing to do with the building company, however the land and the construction has been rolled up into the 1 loan application through bankwest if that helps

You would have to settle on the land first and then settle on another loan for the construction.…[Read more]

Aussiefied wrote:
hi guys,
– further, those court listings that were presented, there's no guarantee that there's a property behind the court case
– further if there was a property it could be in the wife's name, relative name, etc

There is a guarantee. With any property being repossesed the lender would be suing the owner for…[Read more]

Jpcashflow wrote:
I think every industry goes through this, people want free advice so they can try and do it them selves just to save a couple of bucks.
What is funny thought as soon as they try and do it them selves they either loose more money and create further problems.

That $500.00 saving now cost them tens of thousands of dollars in the…[Read more]

Was the $54k deductible? And if son,  will it always remain deductible?

There are 3 ways this could be taxed. It may end up being a combo. It could be treated as capital account unit a certain point and there after on income account. Seek professional addvice

Under 50sq m?

 A trust is a separate entity for tax purposes. If the trust owns property and rents it out the rent must go to the trust. You or the trustee will have to read the trust deed carefully and then distribute the income to the relevant unit holders in accordance with the deed.

This is very complex area, did you get proper advice?

Yes, many of the majors do. But you probably won’t be able to find out by ringing up as you would be lucky to speak to someone that knows what a trust is. Best to speak to a broker.

A trust does not exist as a legal person so it cannot buy property. A trust is just a relationship between the trustee and the beneficiaries. What happens is a trustee buys a property to be held on trust for the benefits of the beneficiaries.

Now to answer your question, if a trustee buys property and the individual gets the loan then from a tax…[Read more]

Probably the cheaper course would be better – its not rocket science and big savings there.

Depends on what you mean by structure/. Brokers can advise on the credit side and lawyers on the legal side – asset protection, taxation, succession issues etc.

Not my cup of tea

Are you for real?

How long is your piece of string.

I would say that for the average person 10 properties in 12 months is NOT possible. One, two or a few maybe possible if the person has substantial equity. The most that I have seen, recently post GFC, is 6 over 2 years.

Jude13 wrote:
Hi everyone. I'm new to your great forum. I'm finding it hard to get my head around equity. I have read that banks treat it just like cash. If so does this amount get deducted from the loan amount or do the banks just lend against it and treat it as security. My wife and I want to buy our first IP. Our current position is PPOR…[Read more]

Banks will only lend if they can take a mortgage over the property. If there are 2 people on title then both must go on the mortgage/guarantee otherwise the bank will have trouble recovering the property if you default.

Although second mortgages are possible you will not find a lender that would allow what you are proposing. There will need to be…[Read more]

Would be good – but has this 'goodness' been factored into what they are asking already?

watch out for aggregation of stamp duty – not stamp duty on each but on all 3 combined which will be much more.