princesshayleyk wrote:
Great Advice above guys, I appreciate it.  Would you suggest looking in to the Trust option ASAP?  We have only been in business 7 weeks but it's looking rather promising and we already have plans to expand in the next few months.  I have no dramas in spending the money up front if it means saving money and hassle down the…[Read more]

Jessicahsm wrote:
Hi, I have been told to setup a family trust due better (Asset protection, legal Tax minimization as profits distributed to trustees and borrowing capacity as I am thinking to buy more than 4 properties) however i am the only citizen who lives here and all my family lives in overseas and are not Australian citizen, Could…[Read more]

mba422 wrote:
Terry, after all holding costs are paid, each week the property pays me a passive income of $20 per week.

Are you wanting to know if this helps serviceability or hinders it?

It would probably hinder because:
1. Banks assess loans at a higher interest rate, and/or
2. Banks take into account x% of the rent, often 80%

But, it…[Read more]

Yes, you can borrow to buy shares and have the loan secured by the shares – often referred to as a margin loan.

Don't know about bonds – it could be done, but I don't know if it happens.

Is your situation covered by a residential tenancy act? It may pay to check into this first. See also the tenants union in your state.

mba422 wrote:
Jamie, say for example I purchase an IP which after all costs nets me $20 per week before tax considerations @ 80% LVR, is this the best possible result from a serviceability perspective.

Cheers
Matt

Matt, what do you mean? $21 per week net would be better than $20.

For serviceablity the more income you have the more you can…[Read more]

bb2000 wrote:
Hi all.
ive just recently been dischared bankrupt, long story on how it happened maybe for another time.

ok im currently making 100k a year now `and would love to learn how to brake this bankrupt cycle, i clearly understand that i have no way in hell on getting a loan from a bank no matter how much i earn or save.

was wondering…[Read more]

Most lawyers don't even charge that much!

PropertyGuts wrote:
Shukri is in Chatswood, he sets up trusts
http://www.propertytaxspecialists.com.au

What does he charge?

Terryw wrote:

Ralph Z wrote:
Hi Terry:
 I talked to my accountant friend, he told me that I should set up a corporate trust to get tax benefit and also protect my asset in case it has gone bad.  
  Cheers

i would advise you to get some proper advice. This is only half the story. Not e en half

Sorry i was typing on the phone when I wrote…[Read more]

KeithMewes wrote:
I'm not an expert and cannot offer advice but my understanding is to always keep the business and any IPs completely separate. Some even recommend that the business be split as well, such as if you have plant & equipment this is owned by a trust and leased to the business. I personally will be buying IPs in a discretionary…[Read more]

Ralph Z wrote:
Hi Terry:
 I talked to my accountant friend, he told me that I should set up a corporate trust to get tax benefit and also protect my asset in case it has gone bad.  
  Cheers

i would advise you to get some proper advice. This is only half the story. Not e en half

First thing to do is to get some legal advice. Especially with that much cash. You need asset protection and structure set up and loan agreements etc.

cmoore0708 wrote:
Sorry not a property accountant, but an accountant familiar or helpful with residential property investing.

And I'm still a bit confused then by the differences between trustee and beneficiaries. Could we not both be trustees and beneficiaries? 

Thanks

A lawyer may be more appropriate.
A trustee is a person (including…[Read more]

1. This will depend on a lot of factors.
2. Yes. expensive and time consuming and you will greatly weaken any asset protection.
3. Trustee probably shouldn't be beneficiaries – depending on the wording of the deed. Any distribution made is taxed in the hands of the recipients, including the trustees personally. If the income isn't distributed the…[Read more]

Geddo wrote:
We would be in a position to buy in around 10-12 months, but this would get us into a house earlier, and potentially save us some money (if my sums are correct)

After reading some articles on this site, I noticed some investors prefer to rent their PPOR rather than buy and live in it as the expenses aren't tax deductible if you…[Read more]

Geddo wrote:
I think so? My partner will pay around $100 per week in tax, so that will be our saving – that is based on us renting a house for the same price that we rent out the unit for. Am I missing any other costs or savings? Am I using the right formula?

Above you said she is on a taxable income of abotu $30,000. Tax on this would be…[Read more]

I recall many years ago in the early days of learning about trusts. I had both Rentons and Trust Magic and found Renton's pretty dry reading. I never did finish reading it, but it was good to flick through for additional clarrification every now and then.

Is there much chance of good capital growth in Gunnedah?

You also have to assess the opportunity cost of holding these. If you sell it will improve serviceability, possibly assist you in paying down non deductible debt, and allow you to get into investments with higher returns (possibly).

Have you worked out how much money you will save doing this?