There is little to no asset protection with a hybrid because the units are considered property and if they are owned by an individual then they could be up for grabs by creditors. The units also need to be held by the individual or no negative gearing is possible.But, hybrid trusts do have many advantages. 1. They allow negative gearing, and2. the…[Read more]

I could give you a few legal tips on how to structure things, particularly asset protection if your money is still overseas.

Please have a look at this recent WA case where the sellers got into trouble over special conditions:Dodds v Kennedy [No.2] [2011] WASCA 131http://decisions.justice.wa.gov.au/supreme/supdcsn.nsf/PDFJudgments-WebVw/2011WASCA0131/$FILE/2011WASCA0131.pdf

Alexia

You are asking for legal advice. Your conveyancer should be able to advise on the contract and wording etc or give legal advice in relation to the conveyancing. However, best to use a lawyer as there are often a lot of other areas that can arise (estate planning, trust, family law, succession, finance, asset protection etc etc).

I think…[Read more]

Hybrid trusts are extremely complex. You can gift money or property to a trust. If you are gifting real property such as a house then stamp duty would be payable and CGT would be payable if it applied.To start distributing income to the beneficiaries the trust would have to start buying back the units from the unit holders. This would involved CGT…[Read more]

They weren't suggesting agents write the special conditions were they? This would probably amount to legal advice.

Sounds problematic.How can you or them protect yourself? They couldn't get a loan to purchase their share without you guaranteeing the loan – and vice versa.What happens if their spouse/lover/mistress puts a caveat on the property just as you were thinking of selling?What if one party dies?What if one party goes bankrupt?What if one party wants…[Read more]

The ATO generally insists that the property must be available for rent – such as being advertised. If you were in the business of renovating units then you could possible claim the expenses during this period, but if the unit hasn't been rented before and you only have 1 then probably not. A way around this may be to start advertising while doing…[Read more]

I think you should be able to claim the interest on money borrowed to do the renos, but only from the point when the property is available for rent.

If you are selling an option then you won't be providing finance. What you have described as a rent to own seems more like a sale by installments to me.Either scenario you couldn't get the buyer to pay your stamp duty as they will be up for their own stamp duty themselves. It would need to be built into the sums.

Good work!

I still have no clue.

Luke,What are you talking about? More detail needed. there are hundreds of acts, whats the name?

SGermain wrote:
pretty sure that Trusts are eligible for the 50% CGT discount but companies aren't ….. having a corporate trustee rather than individuals is a lot more protected too because IF the trust gets sued you can fold the company if need be and appoint a new trustee ….. individual trustees would be personally liable  (unless I've…[Read more]

wealthcreation wrote:
Thanks. So far I have understood the following steps from Richard's response – 1. Set up line of credit(LOC) with existing lender 2. After LOC is approved, use LOC for loan application with new lender 3. Demonstrate part of LOC as deposit towards next Investment with the new lender However, in my case, the order of…[Read more]

TShould be just a one off application.Commercial loans may have a shorter term, but I don't think there would be any ongoing requirements to show updated income etc. You should ask your broker to confirm.

Who is the bank to tell you what structure you should buy it in. That has far reaching consequences for you that they shouldn't be concerned with. Qs1. Using a company as trustee is more flexible and safer. If the trust is sued the company will protection you and wife to a large extent. It is also more flexible. Say you want to hand over control…[Read more]

Qlds007 wrote:
Agree with Terry any commercially written book usually refers you to a Commercial written Trust which they have the patent on.Course financing a HDT in the current climate can also be interesting.If you thought most Accountants dont fully understand them wait until you mention it to a BankerCheersYours in Finance

RichardI think…[Read more]

Hi M,Strange. Lets discuss over dinner monday? I actually arrive bkk at 3.30pm Thai time so will be around soi 4 by about 4.30 to 5pm.

The appointor's role is usually limited to having the power to appoint and fire the trustee. Depending on the deed the appointor may have to approve of some decisions too. If the trustee hadn't changed then the trustee would have had all the power they needed to run the trust. I can't imagine the appointor would be liable for anything unless…[Read more]