So if the trustee is a company and an individual is the director, the Family Law Act does not apply if that individual is sued by an ex partner therefore the assets in the trust cant be touched, is this correct?

If the person who is the trustee of a trust is sued for personal reasons such as ex partners are the assets in the trust at risk?

So are there any thoughts on the new elite investor pack?

johnmina

So does this mean as long as you dont have another property as a PPOR you can rent it out and if you choose to sell it within 6 years you wont have to pay CGT on it?

johnmina

thanks for that Terry that clears it all up, I appreciate all your help educating me. Don’t worry I’m sure I’ll be back with more questions, as the more I read the more questions come to me.

Thanks again
John

Haha

after much reading and looking through your example I think I understand.

basically
Rent – Cost – Depreciation = (taxable income)

then
(taxable income) – (depreciation) two wrong make a right
therefore
(taxable income) + depreciation = (profit)LOSS

So this is what you mean when you say depreciation isn’t coming out of my pocket.
Now do I…[Read more]

Thanks for that Terry

Thats much easier to understand so this will continue and when it does finally make a profit it will just reduce the accumulated net loss carried over from the years before. so even if it made a profit that year on paper it still looks like its just starting to break even due to the previous losses. Is this correct?
Now in…[Read more]

Hi Terry
Im just a little confused sorry Terry.
So your saying that if the trust is making a lost I have to put funds into it, these funds cover the loss so the trust is at ‘Nil’, correct?
Now the trust can claim the deductions such as depreciation and investment cost but since the trust has no income it is considered more loss, yes?
Then these…[Read more]

Hi Terry
when you say “Deductions can always be claimed by the owner of the builder and this will be used to offset other income” when you say builder do you mean the builder of the trust or what?

thank you
john

wow thanks for that Terry
But what if the investment loan is in a trust and the trust is not making any profit yet therefore deductions cant be claimed right or have I got this confused? or would I simply just as told and keep it IO with offset.

I understand what you mean by paying minimum and save the deposit. This has helped me realize that I…[Read more]

Hi Richard and Terry

Well I know now that using an interest only loan with a 100% offset is best but is it worth lowering the the principal of the loan to ensure it is positively geared. Because if I put all the money in an offset account to reduce the interest therefore making it cash flow positive and then later on use the money in the offset…[Read more]

Hi Richard

Thanks for that and thanks for the email again.
in regards to 2. so the best way to reduce debts in negatively geared property is making lump sums of cash from other properties ie selling, so besides the obvious are there any other ways I should know about?

Also with 3 as long as I a secondary loan is taken out the original loan is…[Read more]

Hi

Thanks for that Terry that clears some things up. I’m just waiting for my accountant to come back from holiday and I’ll be speaking to him in a lot more detail, till then I’m trying to learn as much as possible.

I have a few questions about the equity of a property and if anyone can help it would be greatly appreciated.
1 In a trust structure…[Read more]

Hi Terry

I have taken your advice about doing more research about trust and I wanted to ask two of many questions.
1. After 80 years the trust must distribute all assets, so my question is what is the solution to keeping these assets to pass down them down to my children in the future?
2. If a property is negatively geared the losses stay in…[Read more]

Thanks for the heads up Terry.

So what do you recommend I do before my next purchase to set things up right? That is if there is anything else I should do.

Thank you
John

Thank you for your advice.

So would it be worth setting up the trust even if I only have one property at the moment or should I get a couple more under my belt before I set up a trust? Also how easy will it be later on to transfer property in my name to a family trust or a corporate trust?

I just want to be able to build a firm foundation by…[Read more]