Sounds good. Thanks for that feed back guys.

Cheers

Andrew

Terryw wrote:
I think your accountant may not have it all correct.Hybrid trusts can work, but they must be set up in a way so as the trustee has no discretion whatsoever in distributing to beneficiaries while units are issued. This means to get the negative gearing benefits against personal income the trustee must be required to distribute all…[Read more]

Ok, I understand that it won't increase my borrowing capacity, but will it enable me to borrow to within my capacity in one trust, then open another loan for another trust and borrow to that maximum capacity for that new trust as well? Or will I be maxed out by the first company/trust loan?Also, what trust structures are traditionally used in this…[Read more]

Thanks for that Richard.  To confirm, I can set up a loan in the name of ABC Pty Ltd ATF DEF Proprty Investor Trust with my name only being down as guarantor? Now for the big one, does this or does it not affect my personal borrowing capacity? 

Ok, so the loan must be taken out by the company ATF the trust? Makes sense.  Has anyone had any experiences doing this?  I haven't been able to find a broker who doesn't want it in my name.

Can anyone confirm if they have paid stamp duty when adding a director to an existing trust?  My accountant has warned that I may be liable for stamp duty etc if I add another director but I won't know until the application is lodged.  Does this sound right or am I being led down the garden path? I thought one of the best aspects about having a t…[Read more]

Hmmm, sounds simple enough. However I have been told that if I take out a loan to buy ordinary units in the trust I can then claim the interest against net rent distributiions from the trust.   Given that the property is negatively geared I can then offset the loss against my own income. I have been told this will work with me as the borrower wh…[Read more]

Hmm, so basically I have to ride out paying my own money into the trust until it becomes cash flow positive otherwise put the property in my name which isnt my preference.

Thanks for that Terry, makes sense!So a workable (and legal?) solution would be to buy property in a trust, take out a loan in my name, then essentially lend the money to the trust and the trust pays me back exactly what my repayments are?  I then claim this on my own tax return, the trust carries the loss if it cant pay back the repayments as I…[Read more]

G'day TerryThanks for the informative answers. I have a few questions if you don't mind.If I have a property investor trust established with a Company as the trustee and I buy a property that is not positively geared, does this mean that:1. I will have to personally pay for the difference in loan repayments vs income from property…[Read more]