I believe their trust was being marketed on the benefits of reducing land tax. But a few years ago the land tax rules changed for trusts and this doesn’t seem to work anymore. I am not sure what the benefits of their trust would be now.

For a good trust accountant in Sydney see http://www.guardianpartners.com.au

Terryw
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You possibly could, but you will end up having to pay CGT on 2/3 of the house. Maybe a better way is to move in, claim the grant, and then move out completely and rent it. Use the 6 yr rule for CGT exemption.

Terryw
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Terry@discoverhomeloans.com.au
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I’ve done it too in the past. Ended up with lots of problems chasing my money. Just be careful.

Terryw
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You might be able to just reassign your option to the end person, or do a simultaneous settlement.

Terryw
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You might be able to just reassign your option to the end person, or do a simultaneous settlement.

Terryw
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Be careful about making written offers, or you could be locked into a binding contract if they accept. you wouldn’t want 10 accepting at the same time or you’d be in trouble. Talk to a lawyer about condition clauses.

Terryw
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If you sell you will be hit with various costs such as CGT, legals, loan exit fees, and agents fees. Do some sums and work out what these will be. Then weight this up against not selling.

Terryw
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Hi baldy

These are referring to two different types of trusts. Hybrid and discretionary. Hybrids are best used when the property is running at a loss, as the individual can offset the loss against their personal incomes.

If you are going to be buying cashflow positive, then you will not usually have a lossso will not have to worry about this so…[Read more]

work out the return. If you get 2100 per month, that equals $25,200 per year. That is a return of 5.47%.

Is this a good return? If you opened a ING savings account you would get more. But with the plates you may be able to borrow t o purchase, meaning less cash needed, making a higher yield, and there may also be capital gains too.

So it may…[Read more]

I believe any sort of business requires an ABN, including trusts. With shares its similar to property, you just open an account in the name of the trustee and the trustee buys and sells shares.

There are some extra tax rules with dividends and discretionary trusts. After a certain amount, the trust may need to make a family trust election. Once…[Read more]

If you buy property for cash, it may lose some of its attractiveness as an investment. Property is usually considered a good investment because it can be geared. You might be better of just in shares.

Terryw
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Terry@discoverhomeloans.com.au
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I have no fixed loans myself. I like the flexibility of being able to change banks easily if need be without potentially high exit fees.

Terryw
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<edited>, 10 people will be hard to manage. And the profits will be so low, will it be worth the effort? If you do go ahead, probably best to look at a unit trust type structure where there are 100 units and each person owns 10 units. You will need a written agreement on how the expenses will be paid and the rent distributed. eg what if you are…[Read more]

You will need to set up a written loan agreement between the person lending the money and the trustees of the trust. Probably best to transfer it to the trust bank account first.
Most trust deeds allow a company set up later to be a beneficiary, so you may be able to save some fees by waiting a bit to set it up until you need it.
The company will…[Read more]

Your partner could get a No Doc or a Low Doc loan to 80% of the value of the property – subject to a few qualifications such as location, if has an ABN for 2+ yrs etc.

Terryw
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Terry@discoverhomeloans.com.au
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You can be qualified in as little as 8 days. eg see the courses at http://www.ps146.com.au/

Terryw
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1 day.

Terryw
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There are not many books out there on this stuff, but a few accountant websites have a list of the differences.

Trusts are generally best for property investment due to the access to the 50% CGT discount which companies don’t get, and the tax advantages as well as the asset protection advantages.

Companies are good for business as they limit…[Read more]

Hi Raddies

ASIC fees have been reduced to approx $400 for the formation of a company.

Sanjiv, I think ideally you should have separate trustees, but having one trustee should still be fairly safe. If there is a problem, then it is the trustee that is sued, but usually the trust assets should be safe. You just need a well drafted deed which makes…[Read more]

The block is costing you money as it is not income producing. Make sure you check with your accountant on the deductibility of costs such as interest etc.

But selling the land will cost money in fees taxes etc. What about building on it and then selling or keeping?

I generally think renting is a great idea as you may be paying a lot less than…[Read more]