Thanx Jamie and Richard. My accountant is a chartered accountant and he himself invests a lot into property an developments.thank you for your valuable advice. Will definitely keep your advise in mind.

Setting up a trust wasn’t very difficult. Just make sure you get a professional to do it at least the first time for you. It cost me 1650. We set up a family trust with a company as trustee with my husband and I as appointees of the trust and beneficiaries. We then set up another trust that was the share holder of the company for asset protection purposes.

We then went ahead and contacted a mortgage insurer who went through our finances and said we had the serviceability and could get a 95% loan. The next day I went ahead and put an offer on a 2-1-1 property I have found close to the city and was an urgent sale by the owner. It had reno potential. The only draw back was that it was a starta unit with start fee of around 350 a quarter and rates 1800 per year. Pricefinder said that it was worth 345k and after negotiations we purchased for 310k. It is currently rented at 320. I plan to reno the kitchen which is really bad and rent it for 350.

Home loans asked for about 6 pay slips from my husband and accepted just the one from me. We came up with a 5% deposit and 9k stamp duty and they added 6k LMI to 294k loan.

One of my friends purchased with Homeside it was being processed by another mortgage broker. It was quick and swift. The same broker had helped him get a loan through Homeloans the month before and the process took more time. So I am going to go with Homeside with my next purchase in 2 months time. We plan to set up another trust and a company for the next purchase but the share holder company remains the same. This time we will buy the trust deed and company online and get the accountant to go thru it.

Hope that helps.

So you reckon its still worth spending 6500 if we can get 80$ extra rent each month? thanx Jo

thanx a lot maxi10

Hi Anthony

thank you for your input. Any particular areas that your would recommend? thank your

Hi Richard

Can you tell me more about the UK investment?

Cheers

Jnb

What is the advantage of transferring the property into my husband’s name? We were thinking in terms of asset protection and me doing a less riskier job thought it would be safer to have it in my name. Am I wrong? Yes we have just realised that and that is definitely our next consideration now that you have pointed out to look for value adding or positive geared properties

Hi Bardon

Thank you of your response and suggestions. Yes we do intend to move back into our PPOR in 3 years time as we do not want to miss out on the CGT.

How do we borrow 105% finance? Is that by using equity in the PPOR?
Also, we have purchased our IP under a DT structure with company trustee and the share holders of the company is another trust. This means we cannot claim losses on my husband’s income and will have to wait till the property starts making income. Do you think next IP should be purchased under a unit trust to claim tax deductions. We went for a DT to maximise asset protection even though my husband and I both have professional indemnity in place along with income and life insurance.

Cheers

JB