All Topics / Help Needed! / Using trusts to never get ''maxed out borrowing capacity''.

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  • Profile photo of DalkuiDalkui
    Participant
    @dalkui
    Join Date: 2022
    Post Count: 0

    Hello all, i would appreciate your help so much if anyone knows the answers Im looking for. Im looking to buy my first investment property soon. Im a bit stuck when it comes to building a trust.

    The main reason I plan on building a trust.. is to ensure that once I max out my borrowing capacity with the trust, i can then build another trust and approach a different bank to borrow more money. I am on a low wage but have a lot of savings to make multiple 20% deposits on different positively geared properties, my borrowing limit being 150k will let me buy 1 house per family trust.

    The questions i have…

    1. Is this method still usable or being used?

    2. Does the trust need to be professionally set up or can i buy a $135 trust off the internet somewhere?

    3. what are the essentials that need to come with the trust i buy. e.g ABN ,TFN, GST registration?

    3. if you have a book suggestion i would really appreciate it as Im finding it difficult to understand trusts.

    Thanks heaps,

    Regards Dallas

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hey Dallas,

    Yes, the approach continues to work: for the right investor buying the right property.

    You will need to go and get legal advice about the right trust and how to set it up. That will cost several thousand dollars.

    I have a resource called ‘Buyer Beware’ that explains all the structures, but it is currently out of print and needs an update. If only I had more time…

    Bye,

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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