Keep it simple, keep it flexible. Save on the additional costs and hassle of having a trust.

When you have a stable of properties – think about trusts etc.

There have been some really good comments.

Asset protection is over-argued and in most cases will only apply to the very rich. Complex structures are often set up with no commerciality in mind. If you are using negative gearing as a strategy to build wealth – you will need to access the equity to continue the strategy. You don’t want to trap your equity.

The banks are going to get the properties via guarantees, mortgages, fixed and floating charges.

Let us assume that M Y is going to build up a portfolio of investment properties.

1. Put the first few properties in their personal names.
2. Use negative gearing tax advantages.
3. Take advantage of the land tax thresholds.
4. When the properties go cash flow positive, start putting new properties into trusts etc. The old properties can stay where they are.

5. If you are worried about getting sued, buy better insurance.
6. If you are worried about getting divorced, get a pre-nup. If you are already married, the Family Court can look through all this.
7. If you are worried about your son or daughter in law getting hold of the fortune that you have built up for your children – use complex trust structures.

Cheers
A