Hi after reading Steves book on trusts I generally understand the usefulness behind asset protection however am I also missing something? The loan on which the asset is typically paid for is secured by the bank so they have legal right to sell etc if repayments are not made; most land lords take out rental insurance in the event a Tennant gets injured etc and you can’t distribute losses for negative gearing
I’m looking to start to buy an IP so any advice on structures would be appreciated
Thanx
Hi RC388,
Steve's book information is honestly out dated, sure there are some good hints and advice but the way of doing business has changed.
Firstly you have to ask your self who are you trying to protect your self from by having a "trust".
The best way to get the right advice is to contact some one like Terry on this forum. He is the master on this section….
I always say speak to the right people to get the right information….
Plus why are you looking at getting into the property market at the moment.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
rc388 wrote:Hi after reading Steves book on trusts I generally understand the usefulness behind asset protection however am I also missing something? The loan on which the asset is typically paid for is secured by the bank so they have legal right to sell etc if repayments are not made; most land lords take out rental insurance in the event a Tennant gets injured etc and you can’t distribute losses for negative gearingI’m looking to start to buy an IP so any advice on structures would be appreciated
Thanx
Think about what would happen if you were to be sued – non related to the tenants, but outside, such as business collapse.
Also there are ways to set up so as to reduce the personal guarantees and thereby reduce risk. Remember the motto “always ask for a personal guarantee but never give one if ‘possible’ “
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry – the chances of being sued (I guess) is no different to that of an ordinary person ie. an employee in a company and its not my own business. With monthly income, is there any disadvantage of not having investment properties in a trust (looking at 2 IPs) since Im looking to negative gear.
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