With trust assets, the trustee’s name appears on title. This can be either a company or a individual (can also be more than one). The trustee is the legal owner, but not the beneficial owner. The beneficial owners are the long list of people listed on the trust deed.

What this means is that if you are sued, and you are the trustee of a trust, you don’t own these assets. If you have the right trust, the assets of the trust can usually not be gotten at.

That is why many people use a trust for owning property. Taxation savings is another major reason.

With running a business, it can be done through a trust, but businesses are risky, so a company may be a better option as the liability is limited. The companies shares can be owned by your trust, adding asset protection and tax advantages.

Terryw
Discover Home Loans
North Sydney
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Brokers are often approached by ‘marketing’ companies who wish us to refer customers.

There is one out there that offers us 4% commission (of sale price) for just referring customers.

Terryw
Discover Home Loans
North Sydney
[email protected]

Kim

Surely with a loan agreement interest could be charged and hence claimed. At the seminar, did the ATO mention a written agreement? Without one, it probably could not work, but with one it should.

BTW, there was a recent case in the AAT where the ATO disallowed the interest claimed on a loan in a personal name where the funds were used by the client’s Pty company. AAT overruled the ATO and allowed the claim as there was a clear connection with the person borrowing the money and ‘lending’ to their company. (this is from memory, so may be a bit wrong)

Terryw
Discover Home Loans
North Sydney
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I don’t think ASIC require licencing by these sorts of companys, just the real estate licence. It may depend on how much of the advice they start giving you.

Terryw
Discover Home Loans
North Sydney
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I think they might be talking about setting up new structures and then not telling the new lender about the personal guarrantees given with the old structure??

Terryw
Discover Home Loans
North Sydney
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If it is the document number of the certificate of title, then you can get a copy of the mortgage document to find out the original amount lend. (I did this last week in Sydney re an investigation into a family law matter). But it won’t tell you how uch is currently owing and you cannot get that from the lender for privacy reasons. Cost is about $10 and you could probably do it online too.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

1) I think that having a guarrantor for a loan in which you put down a 10% deposit like this is rare. Maybe it was done to save LMI fees?

2) you could have even put down a 5% deposit without your wife or other property being utilised. Using your other property ties things up unnecessarily and using your wife adds risk unnecessarily.

3) It will affect your future borrowings. You could not go to CBA etc while ANZ has a mortgage over your house.

A better way to have done this may have been to setup a LOC against your home, and take the deposit from this for the new home. Keeping them totally separate – avoiding cross collateralisation.

4. If you wish to sell your home, you will need to apply for a release of security. This basically means ANZ has to let you remove the home as security for the investment property. It should not be a problem if prices are going up, if they drop, ANZ may require you to pay money off the investment property loan for them to release the home.

Terryw
Discover Home Loans
North Sydney
[email protected]

It should work as a way to claim extra deductions early on and to save tax. But you may lose the CGT exemption and it may end up costing you more than you save in the long run, if not done properly.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Carlin

That sounds strange. A super fund is really just a trust. The trustee can be a company of individuals as with a discretionary trust. The same trustee could possibly be used with both your discretionary trust and the super trust, but a super trust could not be a trustee of a trust.

I don’t think there is any way of getting money out of a superfund once you put it in there, other than selling something to the trust. And there are various rules governing this.

So this sounds rather strange, if not interesting!

Terryw
Discover Home Loans
North Sydney
[email protected]

I wonder why he just didn’t get the AFS licence?

Terryw
Discover Home Loans
North Sydney
[email protected]