sorry Amir, I just found your email in the spam folder.

Yes plenty of accountants do set up trusts. But they have no qualifications or licensing to do – a hairdresser is just as qualified.

The accountant will argue they are not giving legal advice, but just providing a document drafted by a lawyer. If so why not go directly to the lawyer who can tailor the trust to suit your needs, advise on who…[Read more]

You shouldn’t go to an accountant to set up a trust as this involves legal advice. An accountant, assuming they are a registered tax agent, can only advise on the Commonwealth tax aspects. You would need advice on the structure of the trust, who the trustee should be, injecting funds into the trust, succession on incapacity and death, stamp duty,…[Read more]

Cross Collateralising refers to using 2 or more properties as security for 1 loan.

Portfolio packages don’t necessarily involve crossing security but it will depend on how it is set up.

There is one well known ‘promoter’ that encourages the use of the St G Portfolio product which is just a big LOC

They way they suggest is terrible and involves…[Read more]

Yes as if separate titles you could finance them with different lenders.

and it will depend on how many units.

someone would generally need an AFSL or be an authorised rep to advise. Best to see a financial planner.

-When you own a company or control a discretionary trust the lenders will generally take your income and the company’s income into account. It won’t matter too much whehter the income is $100,000 in the company and $0 in your name or $50,000 each. It all adds up to the same. With trusts it can vary from lender to lender. Some will refuse to take…[Read more]

Keep in mind it won’t likely be one structure, but multiple legal entities and trusts together with individual ownership

Yes this is common. But you might have a few tax issues if you are artificially diverting income to a company.

In the past I have actually asked the bank and they confirmed it was a trust account.

I agree that doesn’t pass the sniff test!

I am a lawyer specialising in structuring too and have never heard of such a thing!

I would have thought the mortgagee would have served papers of the tenant to get them out.

Trust account?

I would suggest legal advice as well, especially if you won’t be an owner as lots of issues to consider, especially around estate planning.

Look at keeping the penrith property and borrowing against it to invest. If you think property is a good investment consider something you can add value to. You can to get high growth if possible. Buy and hold just takes too long.

Your plan doesn’t sound too appealing to me. Where would you live?

Yes it is possible for both spouses to be on the loan but one on title. It is not easy these days because of a change in the Code of Banking practice 2 years ago, but it is still possible. Easier for investment properties though.

First thing to do would be to work out if you qualify for finance – which appears it might be difficult to do.

e) You may not be able to borrow in the future

keeping the cash in the offset accounts saves you interest but also makes that cash available for future investments too. If you paid a loan down and could not borrow any more you won’t be able to invest like you could if you hadn’t paid the loan down.

I guess the down sides are:

a) Tax – what if you need the money to buy a kidney or fly around the world?

You might be able to borrow, but the interest won’t be deductible.

b) risk

What if the worst happens, and you have a cash flow crisis?

c) retirement

Retirement could be delayed if your rents are not enough

d) Helping kids

What if you…[Read more]