Hi All…

Thanks very much for all your advice.
I will be seeking professional advice on this matter, but, I thought I’d seek a direction as to what to seek professional advice on. ( And you all have given me that direction ).

I appreciate the feedback.

Will keep you posted as things progress.

All the best.
ME!

SMooTH by name…
SMooTH by reputation…

In addition to this dilemma, lies my personal dilemma.

At present the company structure would be setup so that we all have equal shares in the company.
The two other people, already have family trusts setup, and are planning to setup the company using their family trusts as apposed to their personal names.

I, on the other hand, do not have a trust setup, and wondering if I should do this before we create this company, and setup the company using my trust as apposed to my personal name.

We are plannning to purchase quite a few Investment Properties over the next 5-10 years,
with an average of buying 2-4 properties a year.

I do not have any family to include in my trust as yet, so as for the ability to distribute to low-income earners, etc, I do not have that option at this point in time. I predict that my current girlfriend will probably be a long term relationship, and suppose some day she may be an option to go into the trust. Is it a good idea to organise a trust now? Do I have to make any allowances so that I can include additional people ( girlfriend / children ) later down the line?

Any advice on this matter would be greatly appreciated.

Thanks!
ME!

SMooTH by name…
SMooTH by reputation…

Hi Rob.

I was hoping you might find your way to my Forum topic, as I have been reading through a few of the other posts, and found your advice to be very interesting ( and taken note of your email address ).

This IP is the first investment property for the newly formed company. We can acquire enough finances between the 3 of us to cover the Stamp duty and fee’s, but not to cover a deposit.

We will be using a 90 day bond as a deposit on a property, with hopes to secure a 100% Interest Only loan.

We are not concerned with sourcing the loan from Australia or oversea’s.

Although I am still learning ( quite new to this all ) I appreciate your advice and will run it by my fellow directors

At present I’m under the impression that we have a Mortgage broker looking into what our options are as of today ( 20.05.2004 ) but we’ll see what he comes back with.

Wait until I tell you the time constraints I’m working with. ( Right now my role is to research what I can ), but we have already made an offer on a property ( yesterday ) and it has been accepted – wasn’t a planned thing, it just seemed to happen that way.

There is a clause regarding ‘ Pending loan approval from nominated lender ‘ on the contract, so we have 90 days to sort out these little issues.

Thanks for your response, and if you have anything further to add, look forward to reading it.

If things don’t work out with the current Mortgage Broker, perhaps we’ll be in contact with you.

Kind Regards
ME!

SMooTH by name…
SMooTH by reputation…

Here’s a couple to get started with :

PPOR – Principal Place of Residence = HOME
LMI – is an insurance payable when a loan is over 80% of the security property’s value. It can be quite expensive but does allow you to buy with a smaller deposit.
FHOG = First Home Owner Grant
CF = Cashflow
CF+ = Positive Cashflow
CF– = Negative Cashflow ( Negative Geared )
CGT = Capital Gains Tax

SMooTH by name…
SMooTH by reputation…