There is hope. Since you don't need to pay rent you should be able to save up fairly quick and get into a new property

I was typing while Richard posted – but we both wrote essentially the same thing!

That's not my understanding Dean.Banks will still require a personal guarantee from the individual behind the trust and will look at all their debts and loans they have personally guaranteed. So using a trust won't really change anything but approaching another lender may help.

I believe there has to be one director of the company at least who has the licence. Since you are director you can have the bank accounts set up so that both signatures are required, or either, or maybe even a third party. Watch out for internet banking too – whoever has access can transfer money.I am not sure about the trust account, probably on…[Read more]

As long as you are tough enough.

Ideally I would suggest buying at least one property in personal names as you get the CGT exemption – which will be huge as values increase over time. But this one I would suggest should be in the name of the spouse with the lower risk so as to increase asset protection.There after, ideally, in a trust, but again it would depend on the numbers. I…[Read more]

Sounds good, the only problem is the ATO may not allow the capitalisation of interest – paying loan 3 from loan 2. I would suggest you read this recent private ruling and then apply for a ruling of your own. Maybe try a separate bank for loan 3.Private Binding Ruling authorisation number 1011345133229 http://www.ato.gov.au/rba/content.asp?doc=/RBA/…[Read more]

What about putting the rent up?When you try they may come to you with a sob story about how their cat needs a heart transplant and they can't afford to pay the rent. Are you tough enough to say stuff the cat, or would you reduce the rent?

in NSW discretionary trusts don't get the tax free threshold on land tax. Usually a person's home is exempt and then they can own up to about $380,000 in other land before land tax kicks in. Then it is 1.6% of the value of the land pa. Discretionary trusts may not get this and have to pay the tax on all land owned.Imagine you had one property…[Read more]

scha9799 wrote:
Hi all,it is very interesting topic, Jacqui , i have very similar situation to yours. I got one under my own name and another one is joint name with my partner.But I wanted to start some property development ( such us subdividing, build a granny flat…)so next property I am thinking to put into company or trust , just in case if…[Read more]

gavsam wrote:
thanks for the ato link Terryw,I will keep researching and seek further clarification from my accountant,You seem to know your stuff, are you a CPA??CheersGavsam

No, a lawyer. I haven't studied much tax though have a personal interest and interest in trusts.

Get it while you can i think. Policies and circumstances change.

jacqui_03 wrote:
Terryw, If I decide to start investing in a company/trust structure I wouldnt change my current IP's due to the costs involved so how do I know if it will be beneficial on the next IP purchase or if I should just stick to buying in my own name?

Jacqui – the only way to know is to crunch the numbers and to make some projections…[Read more]

gavsam wrote:
Hi terryw,Hmmm, will have to further clarify then…..I was told that it is a Discretionary Family Trust, I mentioned a hybrid trust to my accountant, but was told that was not what the proposed 'discretionary family trust' is.anywhere you would suggest online i can resolve / clarify this, ato ….?

Try IT…[Read more]

no GST on residential property unless new.

hi RuthProperty held in trust for someone else isn't available to creditors if you are personally sued – usually.

toniinfante wrote:
If you guys invest with a company does that mean that you will have to charge GST on each deal??

GST doesn't really depend on the type of entity. A company or an individual can register for GST. Also, there is no GST on residential property – unless it is new.

Wal 88 wrote:
thanks terrywwow sounds to me like alot of extra work for very little benifit seeing as i like many others will have very little or no +CF in the early years thanks for the info.

What about the later years?I remember I had a mate who had a wife that wasn't working. He was on the top rate and wanted to buy a property in Perth – i…[Read more]

Hi GavsamSounds like you are describing a unit or a hybrid trust there. With these it may be possible to have the trustee own the property and you use that property as security and borrow to buy units in the trust. You can then personally claim the interest. This is not possible with a discretionary trust though.This structure, the unit or hybrid,…[Read more]

It would be good to get a good general idea via a spreadsheet, but some things will be hard to measure, such as:- the asset protection aspects- the tax savings (future is unpredictable. now no kids but in future you may have 2 kids who could take $6,000 pa from the trust tax free).- Its a bit complicated with land tax as different states have…[Read more]