Catalyst,

Who is your accountant, if you don’t mind me asking?

Cheers,

Stacey

Hi Terry,

I noticed you mentioned the following in your above post:

“There are many different types of trusts, but the most common for investing is a discretionary trust. This is where the trustee owns a property for a wide class of beneficiaries. Any profit is distributed by the trustee to the various beneficiaries (usually of one family) in a way so that the tax is minimised.”

I’ve been reading any and every thread on trusts that I can get my hands on (the taxation implications, purchasing/financing structures, and legal considerations of property investing are the topics my brain seems to take a little longer to feel ‘click’ into place). I don’t have as many dramas with the different strategies I’ve seen listed (buy and hold, reno, wrap, etc.), and other concepts and terminology (rental yield, return on investment, negative/positive gearing, etc).

So, in reference to your comment – you mention that a discretionary trust is (a) most common for investing, and (b) where a trustee owns property for a wide class of beneficiaries.

What is your view on the appropriateness of a discretionary trust for a single investor/beneficiary (i.e. me)? That is, I am single (unmarried, no significant other) and have no financial dependents/children – any subsequent beneficiaries are not on the scene at the moment.

As always, your responses are greatly appreciated (and super informative)!

Cheers,

Stacey

Excuse my ignorance Ryan, but what is a wrap? I’m new to the game too, but have only seen that phrase used a few times and haven’t yet figured out what it means.

Thanks,

Stacey.

Hi everyone,

Firstly, thank you for your thread topic Scott (it’s my exact situation to a tee as well, so I’m following with keen interest).

I’m new to the forum (but loving it), and am curious about anyone and everyone’s views on the following:

As a starting/entry point to property investing: I had assumed that I would save a full 20% deposit on my first property purchase (to reside in as an owner-occupier), partly prompted by the First Home Owners Grant (FHOG), and to avoid mortgage insurance – then move on to purchasing subsequent properties to be tenanted, bought-and-held. But, now I’m thinking the time taken to save a deposit of 20% (up to $80,000.00/2 years+ as a target for properties within coo-y of where I currently live), and the saving of a few thousand dollars in insurance, may be better served by forgoing the $7,000.00 FHOG (for a pre-existing dwelling; or, $14,000.00 for a newly built owner-occupied dwelling – houses/land that are hard to come by), saving 5-10% of the purchase price, buying smart (positively-geared/cash-flow based approach), and renting to tenants immediately (while staying in my current residence for a little bit longer, and building a portfolio from a far, so to speak).

I’m also in my early 20s and lucky enough to be living at home with my family (rent/board-free) and have a good income ($70,000 p.a., gross). So my current ability to save is the best it’s ever been. I am in two minds (but actively researching/educating myself to make the best entry into property investing) … Help!

Thanks in advance for your input.

Yours investingly,

Stacey.