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  • Profile photo of icecoolicecool
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    @icecool
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    Thanks Dan42, so it seems by naming DT01(IP) as beneficiary of Business Trust, we'll then be able to offset income loss from Investment Trust against the Business Trust? Are you aware of any implication by doing so? Is there any pitfalls to look out? If so how can these be explicitly deals with in the trust deed? Thanks for your advice.

    Profile photo of icecoolicecool
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    @icecool
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    Hi Terry & All IP Experts, I'm getting quite confuse now. So 2DT – 1 for running business & 1 for IP with 1 corporate trustee. Is 2DT a better structure as I can understand the asset protection part. But how about loss in IP Trust cannot be offset by the business income? Whats your opinion on this? The accountant insisted that corporate trustee under same DT cannot also be a beneficiary? Is this true? All my readings seems suggest otherwise. Would you confirm this? He did not ask about the names of the children too. Is this not necessary for the trust deed? Is it really a better option to take up a investment loan for buying business rather than to use own funding? Will anyone & Why? Will you?  I 'm sorry to ask so many questions. Any kind advice is truly appreciated. Any other issues I need to be aware of in setting up the right structure? I am starting to feel very stress abt setting it wrong & costly to amend. MAny thanks.

    Profile photo of icecoolicecool
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    @icecool
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    hey daniel, will be arranging to meet up the accountant this week. very nervous indeed & i think it will be wise to prepare some notes & decide the name for trust. anything else i need to prepare? my husband is working so i'll hv to go alone. keep in touch. any advice is welcome, thanks in advance ([email protected] & mobile: 0407895678 – Lyn Lim)

    Profile photo of icecoolicecool
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    @icecool
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    hey daniel, thanks for sharing your info generously.
    just my wide guess of your country of origin.. well we r from Singapore as well & still trying to establish here.  we are very very new to all these IP issues. it will be good to have honest friends who share the same interest. any good advice is welcome. keep in touch here or u can email me. thks again..

    Profile photo of icecoolicecool
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    @icecool
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    Hi Daniel,  we are in Melb as well & i think we r in a similar situation as u. Do you mind sharing who is the accountant you ended up with? Or can u email me? R u from m'sia? Appreciate. <[email protected]>

    Profile photo of icecoolicecool
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    @icecool
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    thanks terry!

    Yes I am beginning to understand it is better to have 2 separate Trusts – 1 for business & 1 for investment. It will be a lot easier to account for the expense/depreciation during tax return & ATO audition. My partner & I were still trying to get these rights.

     

    By lending to company & in return receiving the interest will eventually increase my personal income & tax, right? Or can this interest be paid into the IPTrust a/c to be tax at 30%? Do I need an accountant to document this lending to company?

     

    We have spoken to a broker who has experience in business loan and vehicle loan. He explained due to his network with bank, we’ll not need to produce any business cashflow forecast and it will be approved in 10dys. But he charge upfront of $600 upon approval.

    Is this the norm? We thought lenders will be paying them not us?

     

    Talking about our investment plan, currently we live in PPOR abt 1yr+, we plan to rent it out soon. Should we sell it to trust or remain under our names? By renting out, does it mean it no longer is PPOR and we can buy another PPOR with gov’t bonus?  Currently is P+I with CBA, it cost us $300 if we convert it to IO; to exit will cost us $700. In current market, is there more advantage for us to refinance or stay with it?

     

    Any thoughts or inputs will be appreciated. thanks

    Profile photo of icecoolicecool
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    @icecool
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    Hi Terry thks for your email. Pls pardon me for asking some silly questions as I just want to get the correct structure setup without regretting in near future.

     

    1. So you mean to set up 2trust – 1 for business & 1 for IPs. Can one Trust have 2 corporate trustees?

     

    2. By lending to company, do we still need to pay interest to it. Is Gifting a better choice or same in term of tax implication?

     

    1. That’s very right! That’s why we have to get the pre-approval funding before quiting. A broker in Melb have offer a investment & vehicle loans from Big4 without requiring any business plan and a service charge of $1000 and approval within 2wks. Is this usual? I thot lender normally pay to brokers?
    1. Can’t seem to find a good investment accountant in Melb. Any clue?

     

    Appreciate your advice. thanks

    Profile photo of icecoolicecool
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    @icecool
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    thanks Richard for your quick respond. Talking to a like-minded & knowledgeable broker is indeed a totally different learning experience for us! how much do you recon the bank willing to loan us base on our circumstance?
    thanks

    Profile photo of icecoolicecool
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    @icecool
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    thks terry & ben.

    So Ben, in order to rent back to live myself I will have to first set the Trust to purchase the property in a Trust or Company. How will you structure it for maximum benefits if it were you?? appreciate your advice. thks

    Profile photo of icecoolicecool
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    thks C2 for sharing your experience. indeed word of mouth is powerful & if any business do not live up by standard & ignore their own reputation & customer's interest . then thats it!

    Profile photo of icecoolicecool
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    @icecool
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    Hi Richard, you seems know ppty investment well, i have read your comments to other forumites here. We are actually looking for a experience ppty investment  broker to souce extra finance to purchase IPs. We have a PPOR still oweing 208K (bought 243k). Maybe we can discuss further? We are in Melb. Where r u? thks

    Profile photo of icecoolicecool
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    @icecool
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    thks richard, do u mind to name a few? I need a ppty broker too. any good one?

    Profile photo of icecoolicecool
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    @icecool
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    Currently, we are with CBA's colonial's Rate saver home loan thr' broker (Aug08 @ 8.85%, Bal $205k, Redraw a/c: $12K). My partner is earning abt $40K/yr gross. IF we were to rent out our current PPOR & go renting while looking for IP. Is this worth it to do so in our current situation?
    We are sourcing  new broker to help us get a better rate Or maybe refinance to get a better deal & also extra loan to buy some IP.
    We have abt $100K extra for investment. The plan is to use it as a 20%deposits to buy 2IP. BUT will any bank lend  the rest amount? We also need a investment accountant to help us setup the right structure going forward. Any advice will be appreciated.

    If is you what would you do to maximize return as a clever investor? 

    Profile photo of icecoolicecool
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    @icecool
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    hi terry, thanks for your reply. i apologize for not posting the right question. WHAT i meant is How investor can rent back their own IP to live there themselves & still claim tax deduction legally?? Do they buy it using a Trust or campany? In this situation do they still need to engage an estate agent for the seek of obtaining any paper/document when lodging tax return? What are the steps involves to achieve this situation?

    Profile photo of icecoolicecool
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    @icecool
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    hey juder, did u remove old kitchen yourself? how much it cost for a plumber & electrician? thks for sharing.

    Profile photo of icecoolicecool
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    @icecool
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    HI BOING,
    thks for sharing.  WOW, sounds cool on what u did. Did you build any walls by yourself or get someone to do it? How much it cost? thks

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