Hi Terry,

Thank you for the run down. My purpose is not for security or asset protection; but rather to reduce my aggregated land tax bill and at the same time have the ability to negative gear.

My conversation with GG was short (1minute) where he said that a HDT setup includes a trustee company. He insist that you cannot have a HDT without a…[Read more]

My head hurts…. [stun]

Hi guys,

Gatherum Goss said the HDT MUST have a company structure which include corporate trustee. There is other way. He goes on to say that the banks will not accept anything less than a HDT with a company structure as it’s registered in the ASIC.

How many ways can a HDT be created? I am more confused now.

regards
ptn

Hi Mike

Gatherum Goss charge $2700 to setup the hybrid trust. You quoted $1100. Is there a reason for such price differences? Are there online application that are a lot cheaper?

Thanks
ptn

Thank Mike,

I’ll give Dale a call early next week. His site seems interesting at first glace.

Thanks

Regards
Ptn

Hi Terry,

I originally wanted to open a Hybrid Trust but after talking to my banker at Westpac last week, he seems awfully shy and hinted complications. He said a DT is fine but HDT requires a lot of paper work and may have loan complications especially if some deeds are incorrectly spelt out.

As asdf stated earlier, a HDT requires $2k setup…[Read more]

Hi Terry,

Been speaking to my banker about putting my next IP into a DT and he said that I need to personally guarantee the DT loan. How I structure the accounts is up to me. Trust has a loan of 245k and I have another equity loan of 120k. The loan is in my name and it’s for IP purposes.

I’ve emailed my accountant a few times and have not got…[Read more]

Hi Elkam

I don’t own any Discretionary Trust; my aggregated IPs are reaching the $900k excluding my PROP and I’ve been investigate ways accumulate more IP but at the same time minimise my Land Tax bill.

At 900k I am paying $2680. If I buy an IP worth 350k, my next land tax bill will be $2680+$3500=$6180!!! but if my next IP goes into a DT…[Read more]

3056,

I bought into an apartment 3-4 years ago and I am still down by about 100k. But I haven’t sold it so it’s only paper loss… if the market goes down another 100k, I am still at paper loss of 200k but I won’t sell. I know that property will appreciate sooner or later.
Just don’t talk to that property banker for a while.

Just thinking…[Read more]

I hope CATA could give some input into DT info on land tax and their implication.

Like you Elkam, I’ve bought Melbourne IP only and are forced into paying large land tax bill. I like to understand what happen if you have 3 DT each containing a 300k mortgage; are you forced to pay aggregated amount of 900k or just a land tax bill for each 300k…[Read more]

It does not matter, if you can afford to buy, then buy!.

Look forward in 5 years and you realise how cheap they are now. Mostly likely they will double.

Property are for long term investing. If you’re looking for short term, check the share market.

My advice is keep away from CBD apartment and new unit development. Buy houses with land…[Read more]

Hi Elkam,

I’ve been eyeing this post for a few days now; hope to find an answer too. Hope someone can provide help.[cigar]

Any expert advice???

ptn.

Did you pick up an apartment recommended by Henry Kay?

I did… with my first IP and sure learnt a lot.

Anyway, I turned a bad situation into a positive CF. I furnished my apartment with all new goods. Costed an initial lay out of 15k but the returned an extra $200 pw. 3 months – 6 months ..Short leases but occasionally you get a good one.…[Read more]

Good on ya milly, you certainly have found a good formular, however how long can you survive with $130k going forward including cost + repayment. I assume you’ve buffered in the 30% LVR for low Docs.

I plan to do the same with my IPs … and I am basing on a 60k tax free living per year (that’s like $100k PAYG) however, with my limited equity, I…[Read more]

With my IP, I refinance after 6 months and take that money as repayment so long as the total amount equates to the full loan. IE. 100% Loan + Duty + Lawyers + reno cost + Initial reno Interest. Works out to be about

IP = 300k, Duty = 12k, Lawyers = 1k, Reno = 20k, interest in 2 month = 4k. Total topup is $339k
Note: I have to put up a very…[Read more]

Thanks,

Is that cost for Hybrid Discretionary Trusts or does it cost that much for Discretionary Trusts ? That over head is very expensive.

I will be using this trust for property investment as well as share trading. Would the setup and operational cost for Discretionary Trusts a lot less?

Thanks

Regards
ptn

Thanks gctaeger.

I must have read your answer 4 – 5 times before I totally understand. Must be me and finance,..

The next step is setting one up. Is there an online Hybrid Discretionary Trusts that I can setup? If so how much I am expecting to pay? Also, if not, how much should I expect my accountant to charge me for setting one…[Read more]

Hi guys,

Thank you for your reply. In our pursued quest for answer, the conveyancer said that it’s the water authority has failed to notify land office of the updated easement and should be liable; his job was to ensure that all outstand bills are paid to the date of settlement. The water authority said they are not required to. The arch…[Read more]

Hi Derek,

Thank you for your concern.

Firstly, I posted this warn in the help section not to ask for help but to advice (even the experienced) investor about the potential risk during development. As I believe most experienced investor would check the help section learn further or with the interest to help other.

To answer your question, I…[Read more]

Thanks gctaeger, the example makes the HDT a bit clearer. I wish I have an exact example.

Taking it a step further, if I distribute the profit to my wife (being
a beneficiary) and incure the max interest; a $14k negative against my salary??? [specool]… wow this is mind blowing…[upsidedown][weird]

Kind regards
ptn

ps: Can you please…[Read more]