Forum Replies Created
Well theres alot of things you could do…
~Vending Machines
~Web/Internet (ebay or proudct/service) business
~Network marketing/franchise (where you put time in, rather than puting a lot of $$$ in, but you might have to deal with smaller companies)
~reseller of property (for example find CF+ deals, get a buyers database and assign your option on the property to some else for a small fee).I would suggest you read lots and meet up with other succesful investors. If you learn one thing from them that can make you money, it’s worth it!
Also you could find a CF+ deal (hard in Syd) and you could use your savings and a student loan from the bank to put down a deposit. Make sure the rent pays for both loans and that you can at least service the debt for a short term (perhaps with your parents). Of course due diligence is very important here.
Heres a previous post on basiclly the same issue:
http://propertyinvesting.com/forum/topic.asp?TOPIC_ID=9786Rgds.
Lucifer_auYes it is illegal (well the government is allowed to do it, but everyone else – nada).
To circumvent this SA investors use LO. Or do wraps in other states, the only other state like SA (in terms of not making it easy) is WA, but there all you have to get is a credit license (and pay a small fee).
Rgds.
Lucifer_auTo properly use an Accountant you have to know as much info as they do, so I would do as TerryW suggests! Because the more you know, the harder they will work for you, and the less tax you will pay.
In regards to your plan. It’s isn’t that difficult. All you want is a trust set up, with a corporate trustee (this is a company that acts as a trustee, thereby adding an extra layer of protection, so if you are sued, you can replace the directors (i.e. you) with a family member, and continue on as normal). And have a range of beneficiaries inc. family (though do tell your Accountant about your fathers assets – that is important for certain legal implications), companies and a charity. This applies for pretty much all RE transactions: buy and holds, flips, renos, raw land purchases, development, etc, except wrapping or LO’s. Also you will want to be the Appointor, as this person dictates who (or what) runs the trust, and they can fire the trustee, so pretty much all power lies with them.
If you are wrapping then you only really need a company (mainly because there is no CGT payable, and the great benefit of trusts is that they provide a 50% discount off CGT, so 30% to 15% and better personal liability protection, that’s about it). So if you are starting off wrapping, don’t worry about trusts, all you need is a company (but follow the law/rules in regards to running a company).
If you have a mixture of buy and hold and wraps, create the above trust structure and then place the wraps in a company that is the beneficiary of the trust (keep the corporate truste (which is company that runs the trust) separate from the beneficiary ’wrap’ company).
Also with the use of accountants, the idea I like is basically a book keeper (to do all the boring stuff, putting house under the asset collum, income in, etc) and having an one accountant as a main advisor, one that you can throw off ideas (via email) and he will think about and then tell you how to do it (as opposed to one who won’t tell you anything or tell you it’s illegal).
In regards to putting other business in a trust, I would encourage a separate business, as you don’t want taint your RE assets with, for example you web company (which could be sued by a customer).
Buy the book TerryW suggested. It provides all the other answer.
Rgds.
Lucifer_au“Positively Geared Investment Services”
If you swaped the letters I and G around you get PIGS!
I wonder how many level 3 PIGS signed up for this one????
*Pls Note: If you have read the 7 lvls. of investors you will get the joke.
Rgds.
Lucifer_auWe don’t like to structure our deals with buyers being tennants (unless doing LO’s and we are forced too). Mainly because of non-payment issues. If people stop paying we don’t want to have to wait long periods of time to take back the house (and where we have to pay for it with a non performing buyer).
Rgds.
Lucifer_auIt’s a nice document, but who is it for??? Is it for you? Or for your accountant?
Also you might want to add a charity as a beneficary too, as courts tend not to want break trust up because there is an outside interest/beneficiary.
Also it good to give.
Rgds.
Lucifer_auThey will be slightly negativly geared (just uosing Steve’s 10 sec’ formula). Can you afford them, if you buy them (factor in worst case scenario – 2 units being untennated)? Do they have goodpotential for Capital gain? What is the upside?
We need alot more info about your goals as well as about the proerty. Or so if we are to give an opinon or guess about capital gains, you have to give us a basic idea of where the property is.
Rgds.
Lucifer_auA financial planner makes no $$$ when dealing with wraps or anything in RE (buy & hold, etc). They only make money selling share funds, indvidual shares and proerty trusts, so your not really going to find much help from that source.
Rgds.
Lucifer_auHeres some info (it might be not what you are looking for, but considering how closely structured LO are to wraps, it should provide a bit of backgorund info:
http://www.propertytalk.co.nz/modules.php?name=Forums&file=viewtopic&t=327&highlight=wrapRgds.
Lucifer_auI kow someone from overseas who tried to get a loan (this was approx. 6yrs ago), to qualify for a normal bank loan thay had to of stayed here for more than 1yr (from memory). They were here for about 6 months, so they were denied the loan.
Rgds.
Lucifer_auWhen it comes to Uni it can be difficult to get a loan. So the other alternative is to start a business, so either Vending, Network marketing, franchise (where you put time in, rather than puting a lot of $$$ in, but you might have to deal with smaller companies) or aa internet business or finally become a reseller of property (for example find CF+ deals, get a buyers database and assign your option on the property to some else for a small fee). Or you could find an investor/partner to do some deals with (be very careful here).
I would suggest you read books, attend seminars and read these forums. Although it might not help you immeaditly (hopefully it has..), you can meet great people and even a potential investor or two, so just keep learning.
Rgds.
Lucifer_auMy worry is about non payment (okay not with internet, that just gets turned off) but with large screen TVs, etc. I think it would be hard to get a judgement for non-payment aginst someone who moved into your property, signed up for the deal and then re-neged on it (but still kept paying rent).
While a good idea in principal, practically speaking it looks difficult to do on a sustanable basis, without havig to worry about reapirs and warranites, to much risk (money and Time) for not enough reward in my humble opinon.
Interested in what others say though…
Rgds.
Lucifer_auSorry admin, but you can add three more to the complaints list… (http://propertyinvesting.com/forum/topic.asp?TOPIC_ID=9866).
Rgds.
Lucifer_auWell said Derek! Learning to minimise the down side is a vital skill, as it can make all the difference between a good or poor investment and a great one!
Rgds.
Lucifer_auWith putting a charity as a beneficary, courts tend to see it as being as a proper trust (rather than as a asset protection device, etc), and they do not like to pull them apart if there is an outside beneficary as well. Also it’s good to give back to the community.
(please note, I’m noting saying you should have an outside beneficary, but it can help your cause).
Rgds.
Lucifer_auI just want to say all the brokers that post here on a regular basis are good (form what I know and cooments like these I’ve read). Fantastic that also many of them own property too!
Rgds.
Lucifer_auBut heres what I find funny. We give the tools for someone to get out of debt for FREE (you seem to have trouble grasping that concept), and you offer no advice – except go get some counselling? Well where? Financial planners office? Were they can sell mutual funds? Where? Provide some places. Or how about you do some research just as me and RussH have done and actually offer some useable advice??? Rather than blabering on something that pretty much has no relevance to this persons problem.
Rgds.
Lucifer_auEdited: Took of DEP (Debt Elimination Plan) because it was to big to really fit here (15+ pages…)
D/L at the site I suggested.(I suggest you D/L at that site Mr VIP, I tried to edit it, but at 15 pages… eh’).
Well considering this forum is all abought property… I would suggest you buy a business….
Only j/king… But it’s kind of a hard Qs to answer since us strangers here have no idea about your skill set. We could say buy property, but if you built a business and floated on the stock market, and made over a couple of mill, we’ve just given you advice that really, dosen’t match your skill set. Also we don’t know your goals either… You might be comortable and just want high Capital Gains, or you might want another income, or you might want to reduce your tax, while still buying property, etc.
We need more information. What are your goals? Do you want to work? What are your skills?
Rgds.
Lucifer_auMonopoly – John Burley promises that you can be finacially free of all debts (inc. CC + PPOR) within 7 yrs, if you follow his easy system (he gives it free, as I mentioned before, or you can read about it in Money Secrets of the Rich.
Rgds.
Lucifer_au.You could put a claped out 25yr old+ Car in a trust… So yes, HouseBoats are fine.
Though it might not be worth your while putting your HB into a trust (what is the value of it?, is it an asset? Are you getting income from it?, or are you just worried about being sued???). More dtails needed!
Rgds.
Lucifer_au
