Hi
you can also look at http://www.moneybeans.com. Programme is written by a property investor (from Australia) for property investors.
Disclaimer: this is not spam! I am not a beneficiary.

Terence McMahon
HomeWin
Finance

Hi woodsman,
don’t know about the details, but when I asked Dale G-G about the idea he could see difficulties if the vehicle was in the trust. I think he suggested that if you didn’t want to own it as an individual it could be owned by the trustee company, if there is one. This may involve FBT and other tax considerations – professional advice…[Read more]

OSS,
the Settlor is prohibited from being a beneficiary, but the Appointor commonly is, since he/she is usually the one setting up the trust.
Terry

Terence McMahon
HomeWin
Finance

Hi Carlin & learningtoinvest,
the Adelaide accountant I used to set up our family trust was David Hilton, at DHC Group, Level 6, 185 Victoria Square. Ph 08 8218 4888. He is a property investor too.
Terry
(no commercial affiliation etc)

Terence McMahon
HomeWin
Finance

Robert,
you are of course right. Shouldn’t have dashed off my reply. I was concentrating more on Allan’s original question – PPOR or IP(s) first – in terms of investing strategy. (e.g. how long will the FHOG be offered – 1 year, 5 years, forever?)
Terry

Terence McMahon
HomeWin
Finance

Hi Allan,
another factor to consider is the First Home Owner’s Grant.
If you buy an investment property first you will lose your eligibity for the grant. In your case it may be best to buy a PPOR first, pay off as much as you can ASAP. Paying extra off your home loan will give you the ability to use the equity for an IP sooner.
Terry

Terence…[Read more]

Hi Anita & Nadeen.
I am sure that you can only claim the FHOG on your first property purchase, that you have to have it as your PPOR for at least six months (new rule), and you must occupy it within the first 12 months. Please check with the relevant authority or a qualified professional.
Some lenders won’t lend at all in some…[Read more]

Hi MasterREL,
most forum opinions indicate that you shouldn’t buy property using a company structure – do a search or get professional advice before committing. Also, it may be best for accounting reasons to keep your property investments separate from your share investments.

Terence McMahon
HomeWin
Finance

Lucifer_au,
good answer, but did you mean 50% CGT discount? Also, companies would be beneficiaries, not benefactors.

Terence McMahon
HomeWin
Finance

Hi Gozoo,
take professional advice. My initial reaction: buy the property through a trust, and your business can lease it from the trust; but Yorker has it right. E.g. is the property valuable enough for this setup, do you plan to buy more, etc!
Terry

Terence McMahon
HomeWin
Finance

Originally posted by fenpub:
Is it possible to setup a company within Australia, buy Real Estate but have the money come from overseas?

Helena
0423-135-996

Helena Andrewatha

Helena,
be sure that you use the best entity to purchase property. Advice on the forum has been that a company is the worst entity to hold real estate for most…[Read more]

Hi,
I read that a ‘family trust’ is a specific type of discretionary trust, though the terms are often used interchangeably. With the family trust there is some kind of irrevocable election to the ATO involved to do with the distribution of income – (?)franked dividends. Don’t know any details!
Motivstorm,
unit trusts seem to be recommended for…[Read more]

Jaffasoft,
my accountant said that as a general rule he would only put appreciating or income producing assets in a trust, e.g. real estate, shares, objets d’art etc., but individual cases vary.
Terry

Terence McMahon
HomeWin
Finance

Michael,
my understanding is that you can be the trustee, but there must be other beneficiaries than you e.g. your parents. Who are the beneficiaries of your will? They could be the beneficiaries of the trust.
I think that if either of your parents were trustees, there may be no effect on pensions etc, since the assets are only held by the trustee…[Read more]

Greg F,
with regard to the structure, look at a Unit Trust. Avoid a simple partnership. Do a search on this and the Somersoft forum on the topic. You will find a lot to read!
Terry

Terence McMahon
HomeWin
Finance

Dantheman,
technically, the company doesn’t own the trust – it is only the trustee who holds the trust assets and conducts the business of the trust. The trustee (company or individual) can usually be changed if the Appointor desires. There is nothing new or different about trustee companies – they have been used for centuries.
Michael, you cannot…[Read more]

u2jam,
I don’t know specifics about English mortgage loans, but I suggest that one would use the same method as Australia:
go to your lender and ask for the mortgage loan to be increased. You would need to show that you can service the increased loan. You should then have a sum which you can use for investing…
Have you looked at one of the…[Read more]

SMTM,
from my reading I don’t think there is a difference between a ‘discretionary’ and a ‘family’ trust. Have you read ‘Trust Magic’ or N. Renton’s book on family trusts?
Terry

Terence McMahon
HomeWin
Finance

Hi Nathan.
This idea has been discussed on the Somersoft forum in the past (try a search), but essentially the bank is entitled to know all of their risk in lending to you. If things go wrong for you (e.g. loss of income & unable to meet repayments) there will be a clause in your mortgage entitling the bank to immediate repayment of the mortgage.…[Read more]

Monopoly,
congratulation on your achievements!
My thought is that it might be time for you, with your husband (!), to attend a Steve Navra seminar to look at conservative investing approaches. (If you haven’t already done so, that is…)
Terry

Terence McMahon
HomeWin
Finance