Forum Replies Created
So what is stopping you from getting a town planning permit to build multiple town houses or unit … and build it; see you dream mature rather than let some other developer take the glory.
Just a thought
Regards
ptnThanks Cata,
I like to put some IP into the same trust to dilute the 80/20 rule.
Also, if I add my sister as trustee into the trust with her contracting income to further offset the 80/20 rule, how hard would it be in 2 years time to remove her from the trust ?. Assuming an IP exist in the trust.
Thanks
PtnHi Guys,
[offtopic] off topic a bit but can I have a family trust – Discretionary trust with the beneficiary to include my nieces and nephews?
Just for tax purposes where $1400 can be a write off allocation per year.
Curious
ptnYou’re allowed to have 2 ppor within 6 months. This allows timing between the sale of your recently moved out property and your new settled property.
Nothing prevents you from selling your old and new one within 6 months.
Just wondering how you intend to live there during the development of the 2 units.
hope this helps.
ptnHi robertbath,
If you move in and claim the place as your PPOR (Primary place of resident) than build the duplex and sell it, you wont have to pay captical gain. But if you build it before moving in, then you’re looking at halving the cost / captical gain. IE, Paying CGT of $40k.
I am not an accountant but I’ve done this before.
Regards
ptnSo the moral of the story is don’t get caught.
ptn
Hi Mike,
So if I have my own childcare at home; where my company is operating, I can claim all the expense? IE. A live in nanny?
ptn
Hi Ginnybear
Regarding your poor cash flow, you should consider loc docs loans to buy more IP and look into living off equity to fund your creative ideas.
Let’s say you have $420k asset. You have a mortgage of 200k and you require 80% LVR leaving you about 120k worth of usable equity.
Let’s say you take 30k as living expense (plus single mother benefits), leaving you 90k to use to invest.
You can buy a run down house or apartment; do a quick renovation and sell it or refinance it and use its improved equity to fund your next project.
Sounds too simple? It is if you have a will to do it.
Good luck
ptnTerry,
Rich people send their kids to child care and claim the fee as a company expense; at lease from the stories we hear.
How do they do it?; Could it be that the child is a director of the trust and is an influent to the company’s success? Therefore require child care as education???
Curious
ptnActually, they do. Just not the structual. ie .building but items like hotwater system is. So said my financial advicer.
This will make my cash flow a bit more attractive now.
ptn.
Hi Ginnybear
I am against the idea of partnering as it causes too many disputes.
With your extra capital, I suggest you look at opening a trust or company with the intention to renovate or build. You should hire people to do the work and focus more on management.
I know you may have heard this every where but KISS (Keep It Simple Stupid) will give you the best return.
Something else you can look at is bathroomwerx.com.au to simplify your work and yet give you good return in shorter period. They’ll paint your old bathroom and application with a coat of plastic that will bring it to almost new.
They’re a lot cheaper than replace the lot.
Good luck
ptnHi GinnyBear,
Congratulation on your new found skills.
3 years to renovate a house is a long time. Nonetheless it’s experience in the making. Well done.
Regards
ptnTerry,
Has bank west response to your email yet? [cigar][puke][glum2][sleepy2][upsidedown]
Thanks
Regards
PtnThanks Terry,
I’ll look forward to seeing bankwest reply to your email.
Kind regards
ptnHi Cata,
Thank you for that informative description. I read something like this before but was a lot more complex than your explanation. Makes Sense now.
Cata / Terry, Can you please also answer my earlier ?
What happen if the IP in the HDT appreciates 50k in value, will you need to create more units in the HDT if you want to use this equity? and how does the bank response to the refinance?How much paper work is involved in creating more units in the trusts for the above case.
Many thanks
ptnElkam,
Is it possible to convert a normal DT into a hybrid DT one day if the need arises or is this dependent on the trust document?Your questions are very meaningful (as always), I am keen to see Terry answer this important question too.
Regards
ptnHi Terry,
From memory, Bankwest have done 95% for one of my clients with a hybrid trust.Sorry if I am repeating myself but need to know exactly.
Your client, did he have a company trustee?Cata, I am not planing to do any commercial business in my trust and asset protection is not a point of interest now. Beside, just create a company trustee in a few years time when I feel the need.
Thanks
ptnTerry,
Another important question,
What happen if the IP in the HDT appreciates 50k in value, will you need to create more units in the HDT if you want to use this equity? and how does the bank response to the refinance?How much paper work is involved in creating more units in the trusts for the above case.
Do bank lend upto 90 – 95% if you have a HDT? (including mortgage insurance).
Thanks
ptnHi Terry,
I also bank with bankwest.
Your earlier statement makes me more confused. Do bank like HDT with company trustee? or they prefer HDT with out a company structure?
Don’t worry about the land tax component, it’s another topic of discusion elsewhere.
Thanks
ptnHi 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 trustee company.
I bank with West pac and I want to buy my next IP in the HDT but I fear that I will some how get it wrong.
Base on this info, what would you recommend?
Buy online for $599? http://www.lawcentral.com.au/CreateDoc/createlink.asp?docId=201
assuming all deeds are the same. But the difference of $2100 is the advice and explanation or are there more?.Thanks
ptn
