A lot of people interstate even use Dale Gatherum Goss who is located in Melbourne. It is best to use someone who specialises in Hybrids as some accountants are not worth their money.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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$200 per year should do it, plus maybe extra per property, CGT etc. If you have a company, then annual ASIC fees etc about $350 extra. A Hybrid may be a bit more complicated, and hence cost more.

Good luck with it.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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I have used Goldmine (not sure of the version) and don’t really like it much. There are various filed you can add etc, but don’t know if it could do financial type reports.

We are now using a web based software called Symmetry which can be integrated with MS Outlook and can handle financial details of clients and borrowing capacities etc.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Hi Zen

I’m not sure I understand what you are saying.

With a hybrid trust, you borrow money to buy units in the trust. Since you are borrowing the interest will be able to be offset against your own income.

With a discretionary trust, the interest will be claimable by the trust only. The trust, or trustee, is borrowing to buy the property. If after expenses are deducted from the rental income, there is a loss. This loss must stay in the trust, and cannot be offset against personal income.

you said “borrow against a trust”. If the trust has an unencumbered asset, then it may be possible for you, the trustee, to borrow against this (if the trust lets you) and the interest for this loan could be offset against other personal income if the loan was used to buy an investment property.

If you are in the top tax bracket, then a trust may still be a good idea, for asset protection reasons, succession reasons and tax reasons.
eg. You could use a hybrid trust, offset the interest from your personal income and have the profits distributed to a company which you own and would only pay 30% tax – assuming you had no other beneficiaries.

Maybe you should check with another accountant just in case.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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I beleive being in the same industry is OK, but if you are on a probation period, then they won’t accept that. Either way it would be risky going uncondition in a situation like this.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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I think there is stamp duty exemption still in NSW when transferring between spouses.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Sounds very risky to me.

There may be a chance of long vacancies if tenants move out, values could decrease and interest rate rises and repairs could eat away any positive cashflow – leaving you with not much.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Can’t be done straight forwardly in a tax effective manner.

Any increase in your PPOR loan would not be deductible if the funds were to be used to pay down your IP loan if you are going to live in this property.

You could sell your PPOR to your trust, borrowing to do so. This would be classed as a sale, stamp duty would be payable again, but CGT would probably not apply as it was your PPOR. The proceeds could be paid off your loan on the old IP. The new borrowings would be deductible for the trust as it is for investment purposes.

However trust losses cannot be offset against personal income, but a hybrid trust could enable this to happen.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Kayleen, Are you sure you are doing the right thing?

Watch out for:
– capital gains tax
– buying inferior properties just because they are cashflow positive.

Make sure you do your research before you jump into anything.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Hi Jo

I was assuming that pasandbec would not be claiming the current main property as their main resdience for any overlapping ownership period.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]