Thanks Terry,

Hypothetical Scenario:

Lets just say you (Terry) want to buy a cashflow positive property upto $150k to add to your discretionary trust. Would the potential lender look at:
1. the serviceability/cashflow of the trust only?
2. the serviceability/cashflow of you personally?
3. Or a combination of the two??

You are really helpful!!! [specool]

Terry,

Thanks for your help!!
I thought that it works like this:
step 1: determine investing strategy
step 2: setup appropriate trust structure
step 3: determine what name funds will be borrowed in..i.e. that is
trust or individual.
step 4: purchase suitable property.

So if the properties within your trust are cashflow positive…are
you able to pull the profits out / distribute income???
Or are cashflow profits quarantined within the trust just like negatively geared losses??

Thanks heaps guys!!