My husband and I are very interested in purchasing +ve cashflow properties, we currently have a PPOR and a negatively geared property (we read Steve’s book a few months too late!). While my husband has paid employment I am currently a stay-at-home mum and will probably be so for a few years to come. What is the best way for us to structure our investments i.e. should we establish a trust? Can anyone provide us with some advice or recommend a source of information on this topic?
Hi Daisii,
What structure you should use depends on many factors, if you’re only planning a few properties then it’s probably not worthwhile. If on the other hand you’re looking at emulating Steve and Dave then you really should try to start out with the right structure.
This topic has been covered several times here on the forum. You should be able to find some answers if you do a search.
Rod.
Thanks Rod,
There is so much to learn! Off I go searching!
Daisii
Daisii,
Check out these topics it might help you..
Trusts
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2740
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2337
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2731
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2647
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2554
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2493
wealth gardian
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2608
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AmitI would form a distretionary trust if I was in your situation. It would only cost about $1000, but could save you thousands.
Terryw
Discover Home Loans
North Sydney
[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
Obviously you should only consider setting up a trust if you are investing in postively geared properties.
IMO, at this stage you may be better off just purchasing properties in your own name as it appear you are earning a minimal amount of income at the moment and the next couple of years.
Once you have a couple of properties you may then consider setting up a trust. Also note that the tax effective of a trust depends on the availability of suitable beneficiaries.
It appears that in your current situation you really wouldn’t save much tax at the moment with having a trust.
Also if you purchased in a discretionary trust you would be up of land tax (NSW)immediately as there is no land value threshold if purchased in a trust. Whereas if you purchase in your own name there would be a land tax threshold.
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