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Sorry all, I’ve been away for a few days break. Yes I was referring to a SELF MANAGED SUPER FUND when I said you loose the power fo leverage when using a trust. I can see how it is confusing when reading over what I had written. About 80% of the investors I deal with use discreationary trusts, a few use Hybrids for more creative approaches. Generally only the beginers buy in their name. Discrationary Trusts are certainly somehting all investors need to understand and explore, My advise is find an accountnat who understands property (one who invests in poroperty themselves.)
CheersKarm
I’m a FInance Strategist and work with investors all the time and as part of my work I try to keep informed. COntacting the ATO is often awaist as they rarely give clear “advice” unless you ask for a private ruling. My accountant who is also a wiz with regard property etc has assured me that non income producing proerty, land or building, is not tax deductable. Only after a certificate of currency is created and the property is “advertised and available can it then be calle “income producing”. If you were to “lease” the land for adjistment of three goats (for example) it owuld be income producing and you may be able to claim the total interest bill. Find an accountant. I know a great guy in Melbouren and a firm who operate in Sydney and QLD and would be happy to recomend them. (I get no kick back for that either, I just like what they do for investors)
Best of luck with the goats
Karm
The comments in this forum have offered you some good advice. Here is the crux of it as I see it. Your advisor will make money helping set up and administer a SMSF which is a form of a trust fund. If you are in to trading shares / Options etc and have a profitable system a SMSF can be brilliant. Alternatively if you put a few hundraed grand to put in or role into a SMSF then that could be good too. But if you buy property in a trust you instantly lose the power of leveragea nd this is why we all love property. It is not so much about the land, or the building as it is about hte fact that you can use other people money. Finance Strategy therefore is what property is all about. Find a Finance Strategist who understands trusts and can also recomend a specialist advisor who will listen to what your reallyw anting to do.
Good Luck
Karm
