Forum Replies Created
Terry
Having properties both in trusts and out of trusts my answers would be…….
1. depends you need good advice and use the right trust for your situation
2. no – in perspective they are not expensive and as per many things in life you get what you pay for – work with a specialist in the area and not just any old accountant whose practice is not clearly focussed on this area.
3. accountant who has constant interaction with a good lawyer specialising in the areaDespite hundreds of messages on web sites like this one and advice of many accountants you DEFINITELY can negatively gear your property while using a trust and you can offset losses against your income – have been doing it for a few years.
You need good informed advice by the RIGHT people, have the RIGHT trust and carefully arrange the finance meeting all the required conditions i.e. who the name of the loan is taken out in with a clear link to purpose – NOT in the name of the trust or trustee. Banks have officers who understand these arrangements and can take a mortgage over a security and lend the money to someone else fulfilling all the requirements of negative gearing.
Terry – ask your accountant
how many investment properties he or she personally owns
what percentage of their clients are property investors
what is their recommended strategy for asset protection for the future and protection of lineage
through which trust & loan structures will the tax department allow me to negatively gear my investments
– if they mumble or fudge saying I'll get back to you, leave the room and find someone else.god-of-money mentioned Chan & Naylor – they are definitely one of the accounting firms who can help you set it up correctly and know what they are talking about.
BTW if you own several properties in a single state, in some states, you have the potential to SAVE land tax by having the properties in seperate entities.
Cheers
Hi Islandgirl
I have read 20 or so books on property investing (including Steve and Margaret) and attended many seminars. Both Steve and Margaret come across to me as single approach prescriptive “religious zealots” to me.
My suggestion would be to keep absorbing information, keep reading and realise that no-one is “right”.
There are many property millionaires in Australia and elsewhere who did it their own way. Some stick to a single formula they know, others mix and match. Some only do houses, some only do apartments. Some only do positive and some only do negative gearing deals. You need to do your sums and find your own level of comfort.
Unless you are really stupid (or let yourself get badly conned) then it is hard to lose money if you do your due diligence with every deal. As always buyer beware and if it is too good to be true – it probably is.
Suggest you pick up a subscription to API magazine and read the many ways other ordinary folk have got into property investing in dozens of different ways and made a success of it.
Cheers
I set up a company AND a unit trust in the last 10 days through an accountant for $1200 total. You shouldn’t be paying any more than that.
Intriguing thread for a Property Investor site!
A couple of years ago I would have been feeling guilty telling you I recently bought a brand new Subaru Outback with EVERYTHING, leather, cd, sunroof etc.
I LOVE it.
But I realised only recently I have been working my butt off for more than 30 years and the time left to enjoy the nicer things in life is probably less than the time I have already had on this planet – so I am going to have fun as well as invest.
No use making money if you can’t enjoy it!
Hi Nats12
When I wanted to develop in SA, made an appointment with one of council planners and asked what they would like to see on the land, what the council wanted to happen in the suburb. Got fantastic support, gave me dev plan for council area, told me minimum size for dwelling before they got nervous. Got the direct phone number and email address of the specific planner and we chatted on mail sveral times. He gave me hints on council time lines and when to have someting to them to meet the cycle of evaluation/ recommendation/ circulation/ decision/ approval process the council had put in place. Council at thier expense moved a bustop and public lighting so the dev could go ahead.
My advice – get a friend on the inside!!!
cheers PI
Hey! this is my first post. Loved reading all these responses.
Whats wrong with the opening line – “I am doing every thing I can to ensure I don’t have to rely on little Johnny and the pension to survive”.[biggrin]
