All Topics / Help Needed! / New Investor – Starting Again

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  • Profile photo of RJBRJB
    Member
    @rjb
    Join Date: 2006
    Post Count: 10
    June 16, 2010 - 3:52 am

    Hi all,

    I have been a long time reader of this forum and have picked up a power of information from this website.

    I am recently divorced and in the process lost two of my investment properties. I am now ready to start investing again and want to do it right!

    I currently have one IP valued about $250,000 and owing $140,000. It is in my name. I am currently renting where I live.

    From research and reading, my thoughts are that I need to structure my new investing career as follows:
    Trustee Company – me as Director / Discretionary Trust / Beneficiaries – myself and my children.

    I am planning on taking $40,000 cash from the IP to fund the Trust to begin purchasing (therefore owing $180,000). The IP will remain in my name and be effectively negatively geared. The new property (ies) will be held in the Trust and hopefully move towards being CF+ soon enough.

    Does this make sense? Am I on the right track?

    Thanks folks…

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674
    June 16, 2010 - 7:12 am

    I think you may encounter a quarantine problem with the company /trust income losses that they can only be offset against future income in the company structure.
    Check with your accountant on this
    as I am not 100 percent certain.

Viewing 2 posts - 1 through 2 (of 2 total)

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