Zimonya

Yes the trustee can be a beneficiary. If you use your father as trustee, he will have to guarrantee all loans, but you could still access teh income via the distributions.

Corporate trustee makes it more secure. There may be times when the trustee can be sued, so having a company with no assets as trustee is safer in this regard.

Terryw
Discover Home Loans
North Sydney
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Depends on your situation. I would think if you are already wrapping, then ‘yes’ for the wrap kit. If investing in property already, then ‘yes’ for wealth guardian and ‘maybe’ for the wrap kit. I am not an accountant.

Terryw
Discover Home Loans
North Sydney
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Hi There!

Terryw
Discover Home Loans
North Sydney
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In this situation, I would live in the first inv property for a short time period to establish it as my PPOR. Setup an IO loan with a 100% offset on this and others. Make sure they were all stand alone loans (not cross securitised). Pay IO and extra money into an offset account to save interest. Probably get the first proeprty in personal name and the rest under a trust structure.

Then when the time comes to buy PPOR, sell IP1, tax free, put all money off the PPOR loan and also pay all money in offset account off the loan for the PPOR.

You could then set up a LOC on the PPOR for more IPs.

Just some quick ideas.

Terryw
Discover Home Loans
North Sydney
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Hi Gordon

I think you can distribute to a newly formed trust. eg. in one of my deeds it states that a general benficary can be the trustee of any eligible trust. An eligible trust means any trust under which a beneficariary has any interest.
But I do not know all the tax rules regarding this issue – but would be interested to find out.

Ian, beneificaries can be anyone your want.

Terryw
Discover Home Loans
North Sydney
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Andrew, good strategy which should be OK as you are purchasing another 49% of the property, so can borrow the money to do this. You wife can then use the proceeds to pay off your PPOR or other.

Terryw
Discover Home Loans
North Sydney
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My advice is to not rely on accountants entirely. They get it wrong, and some do not specialise in this area so don’t really understand.

It is best to read as much as you can on this forum and others, but read critically as you don’t really know if you can trust the information given. Then read up on the various papers on trusts and structures etc available. Then you should have a reasonable idea of what you want before you go and see your accountant.

Terryw
Discover Home Loans
North Sydney
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You need to list your purchase price.

Asa rough rule of thumb, selling price less purchase price gives the gain, you then get a 50% discount, then divide into 2 and this amount goes ontop of your other income.

Terryw
Discover Home Loans
North Sydney
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In NSW, Stamp duty is payable within 3 months of exchange of contracts. Even on wraps.

Terryw
Discover Home Loans
North Sydney
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At such high fixed rates, the exit fees for your current loan could be enornmous. Have your inquired what these will be? It may still be worth leaving.

I agree with Steven, it is better to get money release and use that as deposit for further property. Taking your values as given, this could give you an extra $104,000 to play with, enabling you borrow another $400,000 or so (providing you can service the debt).

Good current rates are around 6.45% for IO or PI

Terryw
Discover Home Loans
North Sydney
[email protected]