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so apart from this trust magic, are there any others worth reading?? is his other one about taxation good??
also what do you all thing of like the australian property investor magazine or any property magazine, are they worth while buying ( and more importantly reading) or would you learn more from sitting and reading a book instead once a month??
the ones ive seen so far seem to focus on where you should invest rather than general knowledge and tips?? correct assumption??
i know there would be hundreds of hours you can spend on learning, the atax course looks good, however i doubt you can spend a whole semester on it, i mean i would of thought it was basically a tell subject, not a learn, i doubt you can minipulate the government to so i really wonder what they would teach
there are some definante experts in this area…
i do totally agree, $100 is quite cheap but with the range of books out there and more the limited time rather than money i dont want to start with a stack of 10 books to read, id prefer to start with a good one and more importantly not read wrong advise..
thanks for the tips though
hmmm, tried the link and it didnt work…
so are these things cons or are they worthwhile??
would a seminar cover the same as say a few hours direct legal advice or its just more background and understanding u could get from reading a book???
id be interested to know if he is charging u an hourly fee or a set fee for set up and discussion of it…. would it be cheaper for someone who knows what they wants???
coz it could become an expensive exercise to set up a trust if u need 5 accountant referalls, id imagine they would charge atleast $150 an hour
As for accountants a lot of them are simply USELESS and know very little about trusts. Ask them what a “Hybrid Discretionary Trust” is and most of them won’t know the answer.
i very much agree to this, i am actually a unversity undergrad studying accounting in my final 6 months, nothing we have done have covered trusts (except a tiny bit on how they are taxed) and there are no electives for us to take and learn about them. [baaa] I Have friends working in a range of accounting firms which none of them know at all, they dont even know if there practices set them up so this is why im just that little concerned when im told to see an accountant as they can help me
hmmm, thanks, i think the deed is the important issue and how it is structured…
thanks
cheers
thanks for the terry, i can see why the trusts are good things and in addition if a company is used soley for investing then you cant distribute the captial gains, but for secure investing i think the company could be the better option, i guess it will also be worth waiting for the ato to make there decissions about how they want to work it…
it is a good debate to have with a skilled accountant, however its difficult to find one…
so if deeds are generally made up already and they cant be changed by an accountant, why would it be recommended to get the accountant to issue it rather than buying it online??
would that just be so an accountant can see if its totally suitable for your situation?
cheers guys
Terry and Richard really seem the back bone of this and have a heap of technical knowledge…
thanks for your help guys on this…
so when you mean many will fail, is that because poeple are taking the tax consessions to far? or because its seen as a general envasion of tax or a tax avoidance scheme?
so for someone using a trust to grow say a large portfolio, wouldnt the units sort of never be bought back, or would it basically get to one the trust gets good enough it will start borrowing inside the trust and not via the person, hence becoming discressionary…
its just getting a bit confusing as to a) how a unit trust is really different from setting up a company (as income is spilt as a portion of units held, exact same as a dividend in a company). amd b) why HDT are such good things, if the majority of money (im thinking fixed amount) needs to be distributed to the unit holders. Is the main benefit because that minority can be distributed to a non unit owner for the best tax circumstances?
Just trying to fully understand it all, cheers
hmmm ok
see my situation is unusal, i wont be investing for about 12 months or so but im just gathering information and building up my knowledge so general advice would be just fine…
why would it be better for future investors to have seperate loans, is this so when you decide to sell one everything is still structured the same? and say if u invest with more than 80% then u only have the pay the mortgage insurance once?
If im getting into to technical things thats fine but yeah im really only looking for guidence at the moment
cheers
so for the nieve question, but how would u structure those loans correctly, do u basically mean have 2 seperate loans for each property??
would that quoted rate be like a fixed or variable rate?? and what would be the comaprisions to a normal simple structured rate?? So im pretty new to this so just trying to beef up my knowledge…
so what else would i need to make sure are added in to the clauses to make piece of mind? Also with the units issued, say i want to buy 500k of property with the initial set up, and then 12 months later i want to buy something else, do i have to get the whole trust re done or can i just add an additional clause in there with out to much hassel.
Im guessing by what your saying is standard charge for set up of one of these is around the $1,000 mark
richard, as for someone who is quite new to this, what would you say as being a compeditive rate for say 500k (for 2 propertys) as trustee being the borrower (with the normal terms)? Would it be around the 7.1% or maybe a little higher?
Thanks
well if you need to distribute the income back to the individuals who own the trust, what is really different from a unit trust then? Would it be possible to have a mortgage on a property inside the trust but not own any units?
Also ive read everywhere that there needs to be a fixed distrobution from the trust to the owner, but no one has really said what that distrobution is? It would have to be an a fairly low amount for it to have its benefits so does anyone know or use a particular figure.
Cheers Terry