Forum Replies Created
I totally agree my parents had a property and it was coming up for end of lease, and they decided to renovate . Just two weeks before the PM claimed to have done an inspection and all was great, just like when they moved in. Then my parents told them we wouldn't be renewing the lease and they couldn't even find the key and admited they hadn't done an inspection, the unit was a mess, the owner had a cat which was not allowed and was kept in a small unit which it had taken pieces out of carpets, lino and walls. I now manage units for my parents and sister as an extra cash earner and find it quite easy to do if the property is in the same town as you. I know people say don't work hard, work smart but I really don't find it hard at all especially while it is only a few properties. Would have to find a PM if we get too much more.
Hi, I would like to know.
Are you trying to accumulate capital gain. i.e renovate/develop and sell in the first 12 months?
Are you trying to negative gear?
Do you know the answers to these questions?
Do you want to protect your assets from liability?If you decide to move your existing properties into a trust you my understanding is they will trigger CGT and incur stamp duty as you are effectively "selling" them to the trust even though no money goes anywhere.
What vehicle depends on what strategy you are employing.
If your not sure of your aim, anyone will struggle to give you advice of the right vehicle.
Terry that is an excellent post and is also how I understand it.
As Terry said the important thing is each family unit can treat their own profit separately.
The way I understand it is if you only set up a discretionary trust then one of the trustees could potentially stream all the profit to themselves or any trustee or beneficiary of the trust without the other trustees or beneficiaries knowing and that is a dangerous thing.
Unit trust is the way to go if you want to go down the "friends invest together" path, use the individual family trusts as trustees if you want the added protection.There are other options involving companies but then you hit CGT implications again stick with the unit trust.
