We are currently getting amongst it for our first IP’s would like to ask opinions on using discretionary or hybrid trusts as opposed to just buying and borrowing as individuals for the first couple of properties.
Has anyone had experience with going down the latter path then formimg a trust structure with their IP’s later? What were the costs etc and would it have been better in hindsight to start with a trust in the first place?
This is a question we are being asked by mortgage brokers when seeking pre approvals.
Finally, I should note we have limited savings to get started of around $20K and need to find out if it is a wise place to spend some of that at this stage.
Any feedback will be greatly appreciated.Mark.
It will probably depend on how many deals you are going to do. If not sure, may be do one in your own name and see how you go. If intending to do many, then you will need a trust anyway, so why not get it right from the begining. Costs about $2000 to set it up with some advice.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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