Thanks Terry it made a lot more sense now. I now Know that if I try to purchase in a DT it would be pointless unless I am self employed and have the income to make sure I am not carrying any losses otherwise they will get trapped inside the Trust.

Also with the HDT it maybe a little harder to get finance which is the most important issue if trying to purchase another IP.

I have one more question though what if I want to sell my existing PPOR into a Trust and then borrow 100% from it to purchase another PPOR to live in.  As the old PPOR (IP) may not be positively geared will this make it hard. 

How can i keep my existing PPOR (IP) and also use the existing equity to buy another new PPOR and reduce the non-deductible debt on the new PPOR.

Hope that makes sense.

That is exactly what I was alluding to. Sorry about my wayward question.  Yes If you are a PAYE employee how do you get around this?  If you wanted to have the benefit now of borrowing in your own name but using a corporate trustee to hold the IP for you and future estate planning how do you do it.

It seems that getting finance is harder for full doc with a Trust or is only Lo or No doc lending that is hardest to get finance.

How do PAYE wage/salary earners buy through a trust if they are not self employed or have a business with lots of cashflow.

What accountant can give that advice or Finance Brokers with this level experience.

Hey Chris sent you an email but not sure if you got it or not.

Sorry forgot to add what about Insurance protection from being sued by a tenant or someone who injures themselves on your property.  Is there a way to protect this?

Hi Bacon I started the Urban Planning degree done 2 years and got bored of it.  Because in the end you need to get a job in local govt first to get salary and experience then try and get a job in private sector. Was not worth the salary sacrifice at the time.

Why do want to learn about real estate courses.  The best experience would be to learn from these people here on the forum ask many questions and then go out and buy property and learn from that. 

Also check out http://www.invested.com.au they are all investors and into everything from property to shares to business and financial planning.

Hope that helps.

I just finished my Diploma of Project Management at TAFE and now completing my Diploma of Building and Construction also. For interest sake because I work in the industry.  Though I would much prefer to study Financial Planning as I like numbers and want to know how to invest my money. 

But talk to people on hear who have actually built a property portfolio and have been through and seen it all with regards to recessions, high interest rates etc.  They are the people who can mentor you with the right advice.  A property course is good for theory but in the real world it is a different ball game.

or you could study Degree in Urban and Regional Planning at Curtin Uni also,  this is town planning degree.  Project Management courses will only teach you how to manage the project. (any Project field)

Yep this is my second credit crunch crisis.

I remeber the 80's with 18% Interest Rates

I remember the 90's the recession we had to have Keating when prices were bottom.  Bought my first property in 91 at bargain price.

Remember 87 Crash!

Now we have a similar credit crunch – But it is anyones guess to how it will pan out.  You just have to have control of your debt and LVR to be in the game long enough to make it work for you. 

Remember Monopoly

Would you set up a discretionary trust for trading shares and also have your property in that Trust?  Or would you set up a stand alone trust for purely trading and investing for shares only?

What do others think or have done?

Do the lenders look at your capital growth as perceived Income also.

Example salary $80k
Rent $25K
Capital growth at 5% on portfolio worth $1M = $50K

So your gross Income is $155K

Is that how the banks look at your calculations for borrowing and serviceability?

I understand that Ed Chan was saying that capital growth was classed as income..

When would a good time be when purchasing your first commercial property. would you wait until you had a few residential properties behind you or just wait until you had a good deposit and buffer to make sure you could handle it.

Is there any decent websites you can explore which show what is fair that you are paying? like RP Data?