Hi Richard

They hadn’t actually planned to take my GF off the title, at least not yet. As far as I know her mum was just going to take her off the loan, so the facility was in her mums name only.

Is it fair to say that with the two off them on the title (as tennants in common, 99/1 split) there could be two facilities, one in the mums name at…[Read more]

Thanks for your input guys.

Ok, so this is how it would work then, in theory:

– I borrow 10k, buy units for 10k in the HDT
– margin loan size is 10k
– lets imagine funds yield $2000 for the year
– $800 is used to pay interest on margin loan
– $700 is distributed to me which I declare as income and use to pay the interest on my loan, which is…[Read more]

correct me if I’m wrong, but if I use a unit or hybrid trust and buy units, then when the trust uses the money I paid for the units to buy an asset all the income the asset produces have to be distributed to the owner of the units. That would mean that I can’t distribute the profit to someone else… Is there a way around that?

Hi Terry

Yup, I did. In hind sight it’s pretty obvious that he meant that the TRUST would hold shares, not him holding shares in the trust. I gotta learn not to reply to posts when I havn’t had enough sleep

How did the bangkok property work out by the way?

Hi Toolman

I’m relatively new to property investing myself and far from an expert. However, I’ve read a lot of books and other material from both the ‘positive cashflow’ camp (Steve McKnight, Robert Kiyosaki etc) and the ‘capital growth’ camp (pretty much everyone else), so lets just say I’ve heard both sides of the story many times over. After…[Read more]

A trust doesn’t have shares so I’m assuming that the structure you’re talking about involves a company at some level. Is the company the trustee for the trust or a benificiary of the trust? It sounds like the company is a benificiary of the trust and you are trying to access income from the properties by the company paying out dividends to you, is…[Read more]

Hello

Stamp duty can’t be claimed period. However I believe that since loan establishment costs are claimable over 5 years normally I’m sure you could claim what remains of this. I.e. if you lived in it for, say, 12 months you can claim 80% of the costs over the first 4 years of renting it out.

Cheers

If the property is already in your name you can’t transfer the title without paying stamp duty (as though you’ve sold the property to the new title holder).

I’m in the same boat with my first property, and I’ve decided to just leave it as is and buy properties in trusts from now on. One set of deductions now and one potential income stream in the…[Read more]

Hello

As far as I’m aware if the title is in X’s name and Y is only a guarantor for the loan all income and deductions have to be claimed by X. The only way Y is entitled to deductions is if the loan is in both X and Y’s names (not sure if that it possible without the title also being in both names).

There are a number of ways to equally split…[Read more]

Good point. I’ll see whether I can figure out what the ATO thinks..

I can’t remember the name of the firm (it was a Melbourne firm). I’ll see if I can find out.

Nice one coastymike, that was exactly the answer I was after. In your experience, would each new property be placed in it’s own unit trust or would you reuse each unit trust for a number of properties (to the point where land tax, or exposure to lenders come into play)? Would you use the same company as trustee for both the hybrid and the unit…[Read more]

I meant more in relation to holding the property itself, where I’ve heard of people using a hybrid to achieve the negative gearing, yet the property might be owned in a separate trust (not hybrid) where the hybrid may in turn have bought units. The place I read it was really dealing with a different issue altogether so the part about the trust…[Read more]

I’ve spoken to a few people privately and the answer to the posted question is: yes, if you’ve got a good insurance broker it can be done and doesn’t cost any more than income protection the normal way.

Richard, I will still take up your offer and run my whole situation by you. Email will be inbound.

Thanks for your input guys.

Redwing, if I hold the loan and purchase units, then rent the property from the trust myself, I loose the negative gearing benifits because with that setup the ATO will view the property as being used for private purposes. However if the loan is held by the trust and not me, I understand that this is not the case. I’m…[Read more]

Excellent, I guess that’s all I really needed to know. Thanks.

When I rent it out (and thus turn it into an IP) it will be. My question relates to deductions on depreciations I was entitled to before that point (if it had been an IP), but that I didn’t use (because it wasn’t an IP then).

Cheers guys.

I would also like data about median rental yield and interest rates. If anyone is sitting on this, or know where this data can be found please let me know.

That’s a very important point actually, because she may actually be on some sort of pension. I will definately have to look into that.

Forgetting about whether or not it is suitable, is it even possible to set up a facility in the name of the son (no christian punt intended) with the mothers home as security (rather than mother going guarantor), or does the facility have to be in the name of the title holder?