Forum Replies Created
speckles,
1. if u set up a trust and transfet the land u will pay stamp duty on price of land again. (but better than transfering to a trust structure on completion of building).
I made the mistake of buying land under my name but decided to pay SD again & moved it to a hybrid discretionary trust structure. definite gains in the long run (CGT, neg gearing, etc)
2. getting a loan from a bank under a trust structure is difficult. only some banks/ brokers handle that.
3. if selling (under any structure) the gst will erode your margin. and CGT will kick in for the remaining $ (can be minimised under Trust structure)
Regards
Kattan
just my opinion; get professional advise
4.Kirsten,
Dale GG in Melbourne (accountant, author; Trust Magic) with Ann Gambetta (Solicitio) set up the structure for me.Talk to Dale Gatherum Goss and let him set up your IP Structure before you do anything
http://www.gatherumgoss.comThe following is my limited understanding of what can be done with Trusts ( and there is lots more[biggrin]
In essence any gain (profit/ operating/ Capital) under a Trust is distributed to beneficiaries by the trustee (in my case my Company). The trustee can assign the monies in the most tax effective mannerto beneficiaries who have minimal income.monies can also be distributed to beneficiaries overseas with nominal tax paid (about 10%). the best thing is that the monies dont have to be physically transferred; they can still be retained in the Trust with the transfer being shown as a book entry.
Believe me, Trust is magic & your eyes will be wide open when u have finished the book & had a chat with DaleRegards
kattanI was looking around for land with permit for dual occupancy since late last year. identified this property and made an offer (90days settlement) in Jan. Settled in April (after lining up finances, building contract, etc). Started construction in May. expected completion in Mid September.Hopefully start the next Project on completion of this one.
The property is in a area of reasonably good cap growth in Melbourne. with development and negative gearing I plan to be cashflow neutral. It is under a Trust structure hence no worries re Cap Gains.
while the process sounds simple and straight forward I believe that a lot of mental preparation, potential project assessments, cash flow projections, etc that I went through for about a year prior to starting this projec were instrumental in the relatively “hiccup” free process to date.
Hence I want to learn more about property development; better to benefit from someone else’s mistake (for my mistakes cost me an arm and a leg[biggrin])I have recently embarked on my first development project (buy land with permits and build 2X2 bdrm units). Construction is in progress & is expected to be complete in 6 – 8 weeks. I plan to rent them out (hold strategy).
I am planning to attend Peter Comben’s Property development seminar (came across on the Net) before I start my next project (sell strategy).Has any one had any experience with Peter Comben & his seminars? would like some info before I plonk my $.
Terry, I agree. cap growth is the key for long term strategies. while we may feel the pinch in the initial phase (CF-ve) the equity build up will provide us with the ammo to do more and yes the rents will catch up as prop value rises.
Thanks for the comments guys.
Any suggestions from anyone on the issue of dependable, “switched on” Mortgage lenders, Solicitors and Accountants in Melbourne (West suburbs preferable but not essential). would prefer to deal with someone you guys have dealt with before and would recommend.
Thanks in advance
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Hi Mini,You were quicker than me I was thinking of finding some name from the name website for aussierouge. [
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Neha, Juhi another two name..Amit
Roguey
How about Maya – sounds beautiful (the temptress)congrats
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