There are multiple ways you can structure but it can be hard to setup to get the best of both worlds. Also the state that your property is in can have vast differences in land tax liabilities for the structures. Speaking to a lawyer who practices in the state you are buying in and who has a specialty in this area is the way to go.

I have done lots personally and also through my practices.

One of mine is moving tomorrow.

It depends on the zoning, overlays etc. It can take days (3 is my best) ,weeks or months to get the DA.

If it is one of the older blocks that is 2 lots on 1 title then you are looking under $900 to split titles. If you need to actually subdivdide then I would allow $70k including infrastructure contributions ($27k), services connections etc.

It depends on the state because that can have serious land tax issues.

In QLD you would probably use a partnership of discretionary trusts. Your DT in partnership with his. Better for land tax as you get double the threshold and also he controls his and you control use and so can be less messy. I do developments with my brothers and that is the structure I personally use in QLD.

An argument was successfully made that the house up the road didn’t contribute to the character of the street. The large unit block would have assisted that. Your house however is in a group of pre-1946 dwellings and would be a much harder argument to make.
It is in the traditional character building overlay of the new city plan and the neighourhood character significance sub-precinct.

I would suggest it would be quite difficult to remove if not impossible. Probably a court case and then could be iffy.

By my rough calcs you have a 238m2 per-1946 site coverage at the moment and are allowed a 364.5m2, so only an additional 126.5m2

You can get an order from the Court requiring a sale. If it is in QLD feel free to give me a call or PM me and I will give you a quick run down without any costs whatsover. Will also provide non-identifying replies through here for the benefit of others.

There are multiple options and different benefits and drawbacks for different options in different states.

Company by itself can be useful for a development but not for investment (No CGT discount for example)

Land Tax varies greatly for different entities in different states.

If you are negative gearing a discretionary trust is not going to help.

But you could buy 50% in your own name and 50% in a discretionary trust. You could buy in your own name but utilise a layered structure with a discretionary trust for asset protection but actual title held in your name for negative gearing.

If you were in NSW then land tax will kill you on a discretionary trust.

Discretionary trusts have been around since feudal times in England. Hybrid trusts were not.

1. I have lots of discretionary trusts. In QLD each one gets its own land tax threshold.

2. Flexibility is a big thing for me. Property investments are (or should be) a long held illiquid asset. a DT gives you different options every year. 50% CGT discount is not a bad incentive if you are going to sell. Loans with a DT have never been an issue. In my law practice we have multiple DT purchases settle every day, a couple of unit trusts a week and no hybrids. DT’s are not a problem for wills. If you are investing and developing then different DT’s will allow the flexibility to distribute pre-tax income from the development trust to an investment trust that has some losses in it. I am not sure of the time frame for your development, but let’s say 2 years from site identification to the sale of the last unit. Can you be sure that you, your partner, your kid’s, income will be the same over those 2 years. A DT gives you the flexibility to distribute your income (there will be no CGT in development) from the development to the most tax effective people or entities each year.

3. Being a beneficiary of a discretionary trust is not an asset. I like 2nd mortgages and use them in my structures. But that is combined with dt’s. If you have an asset in your name then it is still an asset, if it has grown you may have some equity in it. Even if it has no equity in it your creditors can’t get to it (limited circumstances aside) if it is in your name then it is gone.

Thanks for the kind words guys, much appreciated.

I am not our firms Logan expert and he is not answering his phone but:

My understanding was that annexed Units are already limited to 70m2, must not be self contained and must form one household with the primary house. As per fact sheet
http://www.logan.qld.gov.au/__data/assets/pdf_file/0009/275868/Fact-Sheet-Annexed-Unit.pdf

Which specific definition are you talking about?