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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
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FinanceHi 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 needed?
TerryTerence McMahon
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FinanceOSS,
the Settlor is prohibited from being a beneficiary, but the Appointor commonly is, since he/she is usually the one setting up the trust.
TerryTerence McMahon
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FinanceHi 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
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FinanceRobert,
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?)
TerryTerence McMahon
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FinanceHi 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.
TerryTerence McMahon
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FinanceHi 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 postcodes.
TerryTerence McMahon
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FinanceHi 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
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FinanceLucifer_au,
good answer, but did you mean 50% CGT discount? Also, companies would be beneficiaries, not benefactors.Terence McMahon
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FinanceHi 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!
TerryTerence McMahon
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FinanceOriginally posted by fenpub:Is it possible to setup a company within Australia, buy Real Estate but have the money come from overseas?
Helena
0423-135-996Helena 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 investors.
Do your research, and get professional advice!!
TerryTerence McMahon
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FinanceHi,
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 parties not married, e.g brothers, friends, non-married couples etc. Lots of horror stories on forums about breaking of partnerships.
TerryTerence McMahon
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FinanceJaffasoft,
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.
TerryTerence McMahon
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FinanceMichael,
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 for the trust, not for themselves. As you said, it becomes technical, and there could be implications. I don’t know for sure! Note that they may not want to be involved in the paperwork…
If you plan to buy numerous properties, or other assets such as shares, then consider a trust. Get professional advice first!Terence McMahon
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Finance
My favourite tax quote: ATO s165-55Greg 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!
TerryTerence McMahon
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FinanceDantheman,
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 be both the trustee and the sole beneficiary – you can’t hold something in trust for yourself! For example other beneficiaries may be family members (parents, siblings), or your favourite charity.
Do a search in this site – there should be more info.
TerryTerence McMahon
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Financeu2jam,
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 British property investing weebsites?
Terry.Terence McMahon
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FinanceSMTM,
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?
TerryTerence McMahon
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FinanceHi 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. This could be awkward! Also, there is no guarantee that the property will increase in value in the next five years – one reason why the banks only lend to 80%.Terence McMahon
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FinanceMonopoly,
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…)
TerryTerence McMahon
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Finance
