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Does anyone have any experiance implementing a trust structure in the UK? can outline the differences as far as structuring is concerned?
Does anyone have any suggestions for research tools for the UK market, equivalent to things like CoreLogic and DSR?
Thanks for your responses guys, another question regarding trust structure and income tax
I am familiar with the tax rules regarding discretionary trusts in Oz, whereby the beneficiary is taxed at there marginal rate on income received from the trust. Therefore trustee’s should spread payments to the beneficiaries in the lowest income tax bracket/lowest salary in order to reduce the amount paid on income tax from trust earnings as a whole.
However I have begun researching trust structures in the UK and it seems that any income earned by a beneficiary from a trust is taxed at 45% after the first £1000. I also note that beneficiaries of a trust can claim a tax refund on income received from a trust. But this depends on tax credits available in the “tax pool” of the trust etc.
IS anyone able to explain this further to me, offer any advice on the best trust structure to use for investment in england or recommend anyone I could contact for advice on this matter?
cheers
also looking into mortgages, i understand that if buying an investment property to rent out you must take out a buy-to-let mortgage. i am assuming this is only true for people buying in there name, are you able to take out a standard residential loan if buying through a trust structure. as the buy-to-let mortgages have much less favourable terms
thanks richard and mike, appreciate it
Mike do you have any experiance with cashflow properties at the lower end of the market in the UK, I am following the steves methodology whereby he started investing in purely cashflow properties at the lower end of the market and then diversified his portfolio with growth properties, subdivisions etc when he was more setup. I plan to purchase properties around 100k mainly in manchester and leeds areas which both have good projected growth, infrastructure improvements and the price of SE england pushing people further out. From my planning I will have enough capital to purchase two 100k properties in my first year and that is what i intend to do Any tips specific to the UK market when looking at properties in this bracket?
HI richard
when you say servicing in levels differs could you elaborate?
Also what is your opinion on the 2-5 year low interest loans that revert to a higher rate after that grace period. From the perspective of beggining my portfolio, from a cashflow point of view that is appealing. However I am away that these loans tend to revert to a rate atleast 1% higher then the fixed rate loan which puts me off.In general wHat is you opinion on these loans from a strategy perspective, as I can see the positives in using the low interest period to accumulate properties in the initial stages, and either pay down these properties when the interest rates rise refinance them? Is this something feasabile, or would you suggest fixed rate.
From a planning point of view my focus is on Leeds and the surrounding areas, good links to london/manchester, financial hub, I have spent some time there and like the vibe of the city. I have been looking at purchasing cashflow properties around the 100k mark(2bed houses) to the west which is seeing redevelopment, neighbours some more expensive suburbs and has good fundamentals. Do you have any general ideas on the area.
Thanks for your advice
On a more random note, a query about serviceability in above mentioned trust structure, is an individuals credit rating taken into account when the salary is used to service investments
thanks for that corey, yes I have got my terms confused, you are correct I was looking to use income earnt in england to service investments made in australia. Whats your thoughts on the above point raised about the trust being controlled by a trustee company that is overseas? I am a australian permenant resident but I am english if that makes any difference.
also you say your company deals with a lot of this kind of thing, what are the tax consequences of not being in australia to earn a salary yet making investments in australia
Does anyone have any recommendations on a lawyer who specialises in international trust law, or someone who could be of assistance in the matter of controlling a trust from overseas?
Thanks benny, appreciate that link, I had a look through and that is a very comprehensive answer. the initial statistical research seems lengthy which I like but are they easy statistics to source yourself or can that level of research only be done using things like DSR and RP data. If so, is there a particular platform anyone recommends, as from breifly looking to access the full features membership is quite pricey at $135/month
and also what is the general opinion is on using DSR data to identify potential suburbs, from what i have experimented with it so far it seems useful
Any ideas on a general tactic for highlighting positive cashflow areas. whilst I appreciate all the tips in this forum, I am looking to do the researching graft myself so I can fully commit to the investment rather then looking for a list someone else has put together. So starting from scratch with a map of QLD is there any basic tactic you guys use to direct your research, i.e 25km radius from brisbane >planned infrastructure work>recent growth and neighboring suburb growth>average house price/rent price average demand.
Looking for some kind of framework to direct my initial research for cashflow property, any help is much appreciated.
Thankyou, is there any alternative strategy/structuring that you know of that allows you to utilise the LMI exemption/FHG schemes that is more profitable then investing through a trust structure. Or regardless of the incentive/scheme/plan for transfer of ownership, in the long run investing through a trust and forgoing grants and schemes is the most profitable in the long run.
thanks guys appreciate it, I am ideally looking to start investment portfolio’s in both England and Australia as I will be splitting my time between the two, but would like to be able to expand both at the same time. Obviously the difficulty is I can only be earning a salary in one country therefore the issue of security for loans in the country I’m not working in seems a big hurdle and as you said controlling the trust from overseas. at this stage i am just trying to structure my long term plan, any resources or particular individuals you can recommend on the matter would be much appreciated.
