All Topics / Help Needed! / lending structure and trust

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of ShavlillyShavlilly
    Member
    @shavlilly
    Join Date: 2010
    Post Count: 5
    February 13, 2011 - 6:42 am

    Hi Guys

    Current situation

    PPOR – Value 512K loan = 337K
    IP 1 – Value 550K loan= 350K
    IP 2 – Value 306 loan = 273K

    all with one lender in personal name

    I’ve just opened a trust as company with family trust attached

    Question

    do I buy the next property in Personal name or Company trust

    Have I structured my loans ok. Will borrow 10% on existing properties above and take new loan for 90% with new lender.

    New property will be on a large block 700sm with the plan to subdivide in future.

    My aim is to buy as many as possible.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    February 15, 2011 - 3:00 am

    Sounds like you don't really understand trusts. I would suggest you try to learn more before trying to use one. Get some expert advice too.

    Whether you buy in the trust or not will depend on a whole range of issues. Firstly are you able to borrow 90% with a company as trustee? You should be checking this with your broker and then doing some sums which compare buying under your name v the trust.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Kent CliffeKent Cliffe
    Participant
    @kent-cliffe
    Join Date: 2011
    Post Count: 110
    February 15, 2011 - 8:48 am

    Hi Shavlilly,

    Trusts can be complicated to understand completely. However, I would suggest arm yourself with some basic information. To help you with that, I have copied a trust document which we have sent out in our newsletter. You can download it here:
    http://pdfcast.org/download/property-trust-tips.pdf

    Once you have this basic information, head to your accountant or one you have heard to be reputable. I wouldn’t suggest making decisions on your own through (trust books) as everyone’s situation is different and these books tend to simplify a really important area of structuring. 

    Profile photo of ShavlillyShavlilly
    Member
    @shavlilly
    Join Date: 2010
    Post Count: 5
    February 15, 2011 - 8:50 am

    Thanks Terry, My broker told me that I have to put 20% down to buy in trust. I am considering putting the 20% in to purchase the property in trust for future tax benefits.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 15, 2011 - 12:26 pm

    Agree with Terry.

    Sound like you should be changing Brokers as he clearly doesnt understand how such a structure works either.

    You can actually go to 95% lvr albeit the choice starts to get limited over 90%.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.