Forum Replies Created
I would like to reply to CATA:
Quoted: “A “family trust” can only distribute funds to family but a discretionary trust can distribute funds to any benificary eg. family, friends, or another entity like a company, trust or super fund. That would be the major difference but it depends on the trust deed and how flexible it is. I like them to be as flexible as you can get, just in cast I need to change anything I can do it quickly.”The above statement is absolutely incorrect:
Basic Trust Details
Name of Trust
You are free to choose a suitable name for your Discretionary Trust ie XXX Family Trust, ABC Trust etc. The name should be appropriate in terms of reflecting the nature of the Discretionary Trust’s business (if any), its purpose or the identity of the trustee. You should avoid choosing names that suggest an inappropriate connection with or endorsement by persons, organisations or governments with which you are not involved.1.3 Trustee: company or individual? … a beneficiary?
1.3.1 You should give considerable thought to the identity of the trustee of the Discretionary Trust. Generally, a trustee will be an individual or company. In most instances, it is preferable for a company to be trustee of a Trust so that when it conducts business, enters into transactions, incurs debts, etc on behalf of the Trust, it will often have the benefit of limited liability.1.3.3 The trustee may be a beneficiary of the trust. However, if the trustee is a beneficiary, then it is important that there be at least one other named beneficiary as well. then,you should name 2 beneficiaries. (It is then up to the trustee to determine which beneficiaries actually benefit from the trust.)
2. How many and identity of named Beneficiaries?
The named beneficiaries do not obtain an interest in the assets of the Discretionary Trust nor do they obtain any right to distributions from the Discretionary Trust. The distribution of income or capital by the trustee may be made to any member of the defined set of beneficiaries which includes the named beneficiaries as well as those people set out in the Schedule – which contains a list of other eligible beneficiaries defined by their relationship to the named beneficiaries.Including children as beneficiaries
If a couple and their children are to be listed as the named beneficiaries, in some cases it may be preferable that the children are not named separately. In this case, the words “and any of their children including their future children” could appear after the couple’s names. For instance the named beneficiaries could be listed as “John and Jill Smith and any of their children including their future children”. This means that all of the couple’s children will be deemed named beneficiaries and the trust deed need not be amended if that couple has children in the future. However, you should keep in mind whether children from either person’s former relationships are to be included as named beneficiaries.
3. Which Jurisdiction Applies?
When choosing which jurisdiction applies to the Discretionary Trust Deed, your answer will have the effect of an agreement between the Trustee and Settlor defining the laws of which state will apply to the Discretionary Trust Deed. You should choose the state in which the Discretionary Trust Deed is executed. Other relevant considerations may be the location of the Discretionary Trust’s business (if any) or its Trustee. If this question becomes relevant in the future, the parties’ intention will not be determinative of the issue of jurisdiction but it may be relevant.I hope the above can clarify and correct some points been explained.
Oh okay so which means there are some at that range, I went to the real estates and three different RE told me not at that range. You must know where to find it? Thank you.
I strongly agree with everyone except “RESIWEALTH”.
I’m 26 and coming 27, hold about A$750k valued property + cash. I have asked a lot of stupid questions but not as stupid as yours. Even people asked stupid question but at least they have the heart to learn and to improve their lifestyle. I believe if you start to invest at young age, you will probably able to retired even at age 40 if you follow the right method. So therefore, age is not a question.Through forum I have leart heaps from eveyone’s contribution and from the topic rise had thought me to think and apply to myself, it does help!
sometimes being too smart can be abondon because they are over smart and too complicated to even think of something simple.
Conclusion, I would think if those that are “smart” won’t asked those questions:
Quoted RESIWEALTH
“What is the most dominant age here 17 – 25 ??????
How many people own investments here ???????
Who is just getting started ???????
How many still live at home ???????
How many experts with no money buts lots of info ??????
Any real developers ??????
Any builders ???????
How many authors ???????
How many snoops tooooo scard to answer ???”What about yourself?
Thank youThanks angel,
I have realised the truth +ve cashflow, you are absolutely right. That’s why I have questioning people how do achieve the positive cash flow. There are lots of books or seminar that educate +ve cashflow but then the example they are using is all based of property $50k-$100k, which hardly can be found in qld I am not sure other state. As I said on my previous forum, I have been searching for so many properties with realestate and hardly can find one. I might be wrong but then I really not sure why I still can’t find one.thank you.
I have been through all these situation, so I hope these will help:
Ionnie quoted:
“property/land generates an income you can not claim any costs associated with holding the land eg. rates, interest costs, lawn mowing etc. can not be claimed. Talk with your accountant and until you get a definate answer keep records of your expences”.
You are obsolutely correct!MJA quoted:
“However, if and when I purchase this land (QLD), I’ll be charged stamp duty as if it were an investment.Is there then a process that if I build a house on it and make it my PPOR, I can claim back some of that stamp duty?”You are not entitled to claimed the stamp duty back under QLD law as it is treated as an investment property and not place of residency. I know it is not good! I called the State Revenue and was thinking exactly like you before, and I was arguing saying I can’t prove the place is my main residence while is building and need at least 12 mths to complete. I was at that point in time staying with my inlaw place, first time owning a house. But if you really calculate it the stamp duty would be higher as compared to the investment stamp duty (land only) according to my solicitor which is true.
But anyone knows we can claimed back the stamp duty do let me know. I want my money back!
Lily
Thanks that would be really help, as I have raised that question but not sure where to find the solution.
THANKS EVERYONE! i AM GOING TO GET ONE TOMORROW
sorry I am newbie, where can I get the API article, what is API stand for? Sorry I am new in IP.
quoted robert ” You might find you can keep your home and purchase an investment property”
I have act on your advice, and have been doing research looking for buying a IP. I’ve been looking on the net and newspaper for some property.
Today, I found a property which is located in Ashmore, gold coast. The asking price is $380K, But I was thinking to offer for $280-300K, there reason for that is two doors down was selling at $320K last month and plus including a pool whereas not this one.
The rental is appro $340- $365/=, mostly rented to student from griffith Uni which is 10 mins distance.
Again, I am really interested but then I am not sure whether this is a good decision or not. I have calculate the positive cash flow which I am making loss of $120 p/w because I estimate my expenses really high ie stamp duty, legal fees, other fees because I am not quite sure how much exactly they cost but I will find soon and will re-calculate my cash flow.
Please advice.
thanksHi greg
After listened to your advice I have print out every single article and have file in a special folder.
Thanks for the website info.thanks guys
sorry, but i thought I can get some ideas on how to get rid of my property back home. Thanks for your contribution.
sorry hehhehe
thank you so much greg, yes I have too many special folders for all the notes printout. I will definitely read through all the materials suggested and will come back to you and update you what I am going to do.
Of course I appreciate everyone input, I have mentioned many thanks to every replied. I really appreciate it, god bless everyone.
Please input more. thanks
Quote Kay Henry: “If you have checked out 100 properties, then you are obviously getting a real sense of the market in the area you are looking at to buy in- which will help you to analyse the market and allow you to work out what’s achievable”
What I did was, I took actually more than 100 properties, and put into spreadsheet and then apply Steve’s formulae and to see whether I achieve the result “positive cash flow”. But then it appear to be all property priced below the purchase price as according to pg112. In my spreadsheet as well there are proper weekly rental from respective suburbs that I’m looking into even for those suburb I don’t really like but yet still doesn’t achieve the result.
Basically, through out the research I still can’t figure out which suburb is good to invest. So, if I can’t achieve the positive cash flow, do you think I should change plan to buy a block of land and built and sell it because probably by the time I complete building the property market has gone better and may be this idea is more concentrating in capital growth, which not that secure, am I right? What do you think?
Thank for everyone’s contribution and ideas, I really learn heaps from this forum. Thanks
Yes Kay henry, I did my research almost everynight on few suburbs that I really want to invest. I really want to get an IP this yr but again no rush, I don’t want to make any huge mistake or regret down the track, that’s why I’ve been reading lot of books: two books fm steve’s mcknight I liked it cos it make sense but then when I tried to apply in real life I am so lost I don’t where to go. You know what I mean?
That is why I need help, and this forum is so good! I have read about 20 books from different authors. So I am very serious in IP.This is for Steve: I really wanted to attend the master class in brisbane but unfortunately is already fully booked, is there by any chance I could get just one extra ticket for myself? I can’t afford to fly over to sydney. Thanks
Thank you so much for this:
Yes I read page 34 but I tried to apply in real life and last night I took 100 properties and all does not produce positive cash flow. I am so frustrated!
not happy. That is why I asked how does it work? May be I missed out something.Yes G7 I understand easily on what you explained but then means there is a less possibility to find on positive cash flow property because from last night research 100 properties
let say purchase $300,000.00 and the rental is only $250 – $280 at most suburb at the purchase price range. There is no way I would be able to find one property with positive cash flow in that case. I know I am so wrong but I just don’t know how to get it right. Please help!Wow, thanks for everyone contribution and I really learn so much from this forum. I am really new to IP. So anything would help me in my decision making on IP.
Yes, Pete r I am very interested for further information on those housing market you mentioned. Please provide me more informations?
So, Robert, do you think is not an ideal decision to purchase an unit, apartment or townhouse what about duplexes or houses in queensland? The reason I am asking, I am really keen on doing something this year since the market has flatened and I guess is not the right time to sell my house, at first I thought I could test the market to sell my house this year and any profit can accumulate into the next house so that I have low loan. It seems like doesn’t work that way, so, I have changed my mind of keeping my house and was thinking to do something esle on IP, either to buy a house or etc? Any suggestion? Thanks again for the contribution on your expert knowledge. really appreciate!
Capital exemption – any capital gains or losses from the sale of the dwelling in which you live will be disregarded if it is owned by you and was used as your main residence during the ownership period.
If you renting out 100% initially, when you sell your house you would need to pay CGT for the period of 10mths but you’ll be entitle 50% discount on the CGT assumed you hold more than 12 mths.
if you plan to move in and partially rented out: Only a partial exemption is available if par of your residence is used for income producing purposes. for example you rent 15% of the floor space of your residence to a boarder you will not be able to claim the exemption for that part. ( you will however be able to claim 15% of the occupancy cost – interest, rates power etc as a deduction against income).
I strongly agree with Robert, there is on one in this world would give you the money to invest. They might as well invest themself and make profit themself.
not happy. That is why I asked how does it work? May be I missed out something.
