jasedc5r wrote:
Hi Terryw,Just had a quick question, are your assests fully protected under a trust if the marriage were to split and the your partners name was not in the trust? Or is it best to arrange a prenup/binding financial agreements aswell?Thanks

No, not protected.

I suggest you do some excel spread sheets with different scenarios. See how it goes with trust v personal names etc

You may also wish to consider another option.Purchase the property in a fixed unit trust and borrow to buy hte units. If done properly the interest on the purchase of units will be deductible against your own personal income. Land tax free thresholds would also apply in NSW.This is almost the same as buying in your own name, but it adds a great…[Read more]

If you had 4 or 5 properties you would still have the same issues. The trust could still have tax losses initially. But as time goes by older properties will become cashflow positive and this will offset the losses by newer properties.If accessing equity from a trust there are the usual lender requirements which shouldn't pose much more of a…[Read more]

A trust would work very well if there was a profit straight away.If there is a loss then it could cost you a bit more than holding in your own name. But this doesn't mean you shouldn't use a trust. You must weight up the benefits.If you were self employed you could easily direct income into the trust to offset the loss and therefore save personal…[Read more]

Hi Mid,You've lost me (and yourself?) with the last half that your post.If a trust owns the property then you won't be able to claim any of hte expenses including interest and depreciation and management.All the costs would be claimed by the 'trust'. If there is a profit then this profit would be distributed to the beneficiaries.

Firstly, you shouldn't be using cash as a deposit, especially if you have non deductible debt. Ideally you would borrow this deposit from a LOC secured on you rmain residence or other property.If you are paying $160,000 for it and borrowing the lot plus stamp duty, then say $165,000 (split up of course)repayments at 7% = $11,550 paIf you get $170…[Read more]

Increasing a loan won't necessarily mean you can claim more interest – what will the extra borrowed funds be used for?What about all the costs too. You will end up with a considerable tax loss. If this property would be held by yourself then you could get back some tax, if held by a trust without any other income then the loss cannot be used to…[Read more]

How could you refinance it to keep it negative???Would it be neutrally geared before tax?

You will need to carefully assess the effect of using a trust v individual now and in the future. In NSW discretionary trusts do not get the Land Tax free threshold. Also any losses will be quarantined in the trust. So using a trust may end up costing you in the short term, but hopefully long term this will pay off with reduced tax and other…[Read more]

It depends. If you own it in your own name and have lived in it before renitng it out then it could be CGT exempt. What you do with the money has no bearing on whether CGT is payable.

Co owning properties and co guaranteeing trust loans can really hurt serviceablity and there are numerous issues involved such as accessing equity etc.I have seen many people join up to buy property, but none of them have worked. Doesn't mean your situation won't work, but just needs extra careful planning and consideration before jumping in.

If I was a motivated seller I would accept whoever signed an unconditional contract first with the price I wanted. I wouldn't care if they were a motivated investor or it would mean going with someone who had just made an offer. Even if I wasn't motivated, I would still do the same. A sale is only a sale if the contract is exchanged without…[Read more]

vet80 wrote:
Thanks everyone for your comments. I am going to seek legal advice this week before I ask for my money back because I get the feeling it wont be that easy. The crest thanks for the advice on passive income, I will look into it. To be honest I have a fair bit of money tied up with Aussie Rob and need to sort this out first, feel a…[Read more]

You would want to keep your cash for your non-deduction debt usually. Probably a good way to proceed would be to lend money to your trust by borrowing it from a LOC secured on your main residence at the same rate you are being charged. Any less would cause tax issues.If the trust does go down then you as the lender will probably only lose the…[Read more]

Yes

You can tell the lender to do anytihng, but they won't be contractually bound so they can sell to another even if they take it off the market. They may keep it for you or may not.

That is what I would suggest, but it won't prevent gazumping.Start negotiation, set up a trust, and then enter the contract – if the property is still available.

You cannot claim anything as you wonn't own the property. The trust can claim all the usual expenses though.

DHCP wrote:
Before anyone gazump you, put an offer on the property preferrably put a small deposit and if accepted, get them to take the property out of the market before it disappears out of your sight.Then, do your due dilligence (e.g. building inspection, pest control etc). Also, talk to your silicitor to put the property under a trust name…[Read more]