try http://www.pmigroup.com.au for PMI.
http://www.pmigroup.com.au/locationwizard.asp?attractor=4

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

You would either have to gift money to the trust or loan money to the trust.

Whichever way you chose could have asset protection implications. eg. if you lend money, then go bankrupt, the money loaned is still your asset. If your money is gifted, then it may be safe – depending on when you gifted it etc.

Terryw
Discover Home Loans
North…[Read more]

Don’t worry too much. Negative gearing only lasts for a few years. With rising rents, the property will eventually become positive and then she will be saving tax by having it in the name of the lower income earner. (Assuming things stay the same).

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

You can’t negative gear in a trust. Losses cannot be distributed, so it probably wouldn’t work.

If you had a hybrid, it would be a different story and the unit holder could go for the tax reduction.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Possibly
Tony Cordato, Cordato Partners http://www.businesslawyer.com.au

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Anne

I understand what you are trying to say, and think the others have missed it.

The idea is to guarrantee the loan, then setup a new structure when your borrowing capacity maxes out, not telling the new bank that the same person has guarranteed loans for the previous structure.

Will this work?

Maybe. If the new lender does not ask about…[Read more]

There are also a few other mortgage insurers, however most don’t like things this small.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I beleive that buyers agents fees are a capital expense, and therefore are not claimable at all – except gainst capital gains when you sell.

Any fee you borrow to pay for that is for investment purposes should still be claimable.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Originally posted by carl_vic:
A trust doesn’t have shares so I’m assuming that the structure you’re talking about involves a company at some level. Is the company the trustee for the trust or a benificiary of the trust? It sounds like the company is a benificiary of the trust and you are trying to access income from the properties by the company…[Read more]

I beleive only the owner can claim the interest. The other person is not on title, therefore not an owner and receives no benefit. I think this is covered in the ATO booklet on rental proeprties.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Aside from the finance side of things, do you really think these would make a good investment? banks are wary of lending for good reason. These sorts of units are hard to sell, and this can limit the capital growth.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Hi Redwing

With a HDT the loan needs to be in the individuals name for them to claim the tax benefits. So far I have seen 2 clients with HDT in place, but they had the loan in the trustee company’s name – unaware.

If it is not a HDT, then I am not sure if it would matter whose name the loan was in, from a taxation point of view…[Read more]

Originally posted by Brizza:
Originally posted by lifeX:
You can have the loan in your name and the title of the property in the trusts name for neg. geared scenarios.

Then, the trust is making a profit. And you still get to claim the loss of the loan interest against your own income.

Called Hybrid Discretionary Trust.

Live, Learn and…[Read more]

Hi Calvin

Homepath don’t deal with brokers. I beleive they are a no frills type lender and probably don’t offer an offset account on their cheaper products. I have also heard that they are slow at settling loans.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

There is a book going on ebay for about $5. I just posted a link in another post.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

It can be rewarding if you get the right property. My friend picked up one in Macquarie Fields in Sydney (the area with the riots recently). She paid $140,000 and resold it a year later for $269,000.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Depending on the property, at least 30-40% I think.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Originally posted by FFComm:
Usually there is a CGT rate of 30% for companies, with trusts you get a discount of 50%, therefor 15% (I am assuming that you could move the CGT through a company if you wished).

FFComm

That’s where you have it wrong. Discounts for CGT are only applied in the hands of the beneficiary. Companies don’t get the…[Read more]

Originally posted by kerwyn:
Hi Richard
You question covers a broad area and really depends on what you want to achieve?
Are you after tax minimisation then a Company is the way to go as you only pay 30 cents in the $ tax. Plus if you are running a business and making a profit from property investing Eg doing renos, you can claim nearly everything…[Read more]

Originally posted by richardb78:
Hi everyone!!

As the title indicates, unfortunately i have no idea how trust and companies work. I have read some of the replies to other q’s on the forum.

I really would just like to know if anyone out there can recommend books to read in this area. I would rather have a basic understanding of what it is and how…[Read more]