Hi all,
My hubby and I are first time investors, we are currently purchasing a house and land package, we were all set to purchase via a trust and negative gearing until I found one of Margaret Lomas’s books on positive cash flow property.
I contacted one of the Destiny Financial Solutions offices to seek some help/guidance on our purchase (we haven’t exchanged yet) and I was told in a nutshell there was nothing they could do for us because we are using a trust and that trusts are pretty much pointless anyway!….gulp.
We’re a little confused now, how do other investors structure their portfolios? we thought many people use trusts for investing, is this the case? do investors have a mix of negatively geared and positive cash flow properties? from what I can see positive cash flow doesn’t focus on capital gain it’s more focussed on the surplus per month, isn’t it best to have a mix of both?
Help! anyone?
thanks in advance
KeoHi Keo
You are absolutely correct but unfortunately organisations like Destiny dont necessarily understand or agree with you.
Certainly for clients looking to structure their investments for both asset protection and income distribution a Trust structure is the norm however i would need more specific details from you before i could give you any advice.
Feel free to email me a line and I can look at your position further.
Richard Taylor | Australia's leading private lender
We have all our IP's in our own names.
We are comfortable with that at this point in time.
From a taxation aspect, buying in your own names may be better if you have a decent taxable income.
But I don't have much knowledge about using a trust for this. I was under thre impression that the main benefit of a trust was for asset protection, but as Terry says; drop him a line.
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