Hi All,
I've spent the last year trying to buy as many properties as I could, however I have bought them all under my own name.
Should I have bought them under a trust? They are all investment properties?
I understand that I currently don't have great asset protection at the moment, however is not having properties under a trust a big mistake at the moment?
I am looking into starting up a trust, however now that my serviceability is almost maxed out, it means that I would not get the benefits of having multiple trusts to buy multiple properties (getting this from Steve's new book)
So in essence have I made a big mistake by not purchasing under a trust? Is there a huge benefit in having a trust apart from asset protection?
I really have no idea when discussing structures so any assistance would be appreciated
Kind Regards,
Shivasko
"I've spent the last year trying to buy as many properties as I could"
How many? 10?20?
Positive or Negative gear? +ve CF?
X-collaterised?This question has been asked and answered a dozen times since Xmas.
My serviceability is almost maxed out, it means that I would not get the benefits of having multiple trusts to buy multiple properties (getting this from Steve's new book.
Buying in Trust or Multiple Trust DOES not increase your serviceability.
Richard Taylor | Australia's leading private lender
This question has been asked and answered a dozen times since Xmas.
My serviceability is almost maxed out, it means that I would not get the benefits of having multiple trusts to buy multiple properties (getting this from Steve's new book.
Buying in Trust or Multiple Trust DOES not increase your serviceability.
Richard Taylor | Australia's leading private lender
thanks for the response guys:
GOM – I have bought 6 properties with 5 which are neutrally geared (slightly positive) and the other one which is negatively geared
overall position should be neutral taking all the properties into account.
All bought seperately (not X-collaterised)
Richard – I assume that if it does not affect serviceability then it shouldn't matter if I wanted to buy more properties when purchasing under a trust (assuming i'm not personally maxed out)? I was just going of Steves book where he mentions this..either that or I've completely mis-understood what he is saying in his book.
Should I assume that the only thing i'm losing here is the asset protection. I assume the benefits of not having it in a trust if the CGT benefits and the accounting hassels of having it within a trust?
Kind Regards,
Shivasko
Asset protection is one thing but with 5 out of 6 properties already positively geared a DFT would give you the flexibility to distrubute positive income to the beneficiaries who maybe on a lower income than you and this will reduce your marginal tax income.
Richard Taylor | Australia's leading private lender
Don't fret, just look at using a trust for the next ones. Besides asset protection Tax minimisation is the next most important benefit of a DT
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
It is great to know that you have invested on many properties. I can assure you that it is completely safe to buy your properties in your own name, but you have to buy them a trust. Or else you know what is going to happen, right? All the best for your new property.
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Fat Loss 4 Idiots TestimonialsThanks for the information guys – good to know it not the end of the world…
I will look into having a trust to purchase my further investments however…
Marx3bull – you mention that I have to "buy them a trust" – could you please elaborate on this…or did you mean that I should "buy them IN a trust"
Kind Regards,
Shivasko
marx3bull wrote:IOr else you know what is going to happen, right? All the best for your new property._________________
Fat Loss 4 Idiots TestimonialsWhat's going to happen?
Look for the positives of your situation, can you become a partnershp at general law? Have you created two land tax thresholds with your significant other? Trusts are good – but remember they also have a lot of negatives – loss of negative gearing, loss of land tax thresholds and acccounting and auditing of the structures. Do not get to hung up on someones wealth creation strategies. Make your own with guidance where required………. http://www.birchcorp.com.au
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