I was interested in finding out how many of you use a trust or company as your investment vehicle and how many invest without using any structure? I was also interested in why you chose the particular vehicle to invest with?
Thanks in advance
Dnanz [
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PS: go the Kiwis Fri and SaturdayI bought in my own name, wish I had a trust structure in place now that I know more about them… am looking to get one set up shortly so future purchases will be through it.
r
I own my property in my own name, but am investigating putting future purchases into a trust structure for various benefits.
A lot of people have been recommending Chris Batten’s report – http://www.chrisbatten.com.au
I’ve ordered one, but haven’t received it yet, so I can’t say for sure whether it’ll work for me.
Might be worthwhile for you to check out.
At the end of the day, after you’ve done as much research as you can, nothing beats getting a good accountant (and lawyer, if need be) to sort you out.
Cheers
MHave been investing in property for a few years, and only recently (thanks partly to this site) realised the importance of having the right structure.
Have ended up with a Discretionary Unit Trust (Hybrid Trust) as it appeared to be the most appropriate structure for our requirements, but the type of structure you have depends on lots of issues, so really need to get advice from a good accountant.
In our case, it was well worth the $150/hr to see a good accountant to explain the pro’s and con’s – best money we’ve ever spent and only wish I had have done before we bought the first IP.
Cheers!!!
I use a trust. It is, in my opinion, without a doubt the best way to go!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
G’day all,
Why have a trust? It doesn’t protect you.I can place a caveate on your house any time I like!
If I feel that you owe me money, it justs costs $350 approx.And it never will protect you from the money lenders.Nothing on earth protects you from them.Out of Alan Bond’s empire only the banks got their money.
Bruce G.I have only invested as an individual to date, but am looking to set up a trust with corporate trustee as described in WealthGuardian (available through this site) shortly.
I work in the financial planning industry and have been to many seminars about structuring, but this book is the first thing that put it all clearly in perspective so that I could understand it and see what I needed to set up for my own investing.
BruceG
Trusts may not protect you from the banks, but if you get sued as an individual it should protect the assets held in the trust.
But the major reason is tax savings.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Borrowing money to purchase/re-finance a property (investment or owner occupied) can be a challenge with same banks when the title is held in a trust (especially when the title is held in an incorporated trust = pty ltd).
Challenges are:
1. Getting professional discounts (Westpac and ANZ won’t give these discounts as per their policy)
2. You are also limited in the number of lenders when trying to get a loan in a Low Doc scenarioBest is to keep it simple, ie. the trust holds the title but lending is done under the personal name don’t confuse the bank with issues such income units etc.
Yours sincerely
Rolf Schaefer
RJA Financial Services Pty Ltd
Accredited Mortgage Broker
Tel: 03 9753 9044
Fax: 03 9753 9055
Mobile: 0422 907 022
E-mail: [email protected]Thank you for all your comments, sure have given food for thought.
I think professional advice is required.
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