Good start mate

I like to think in terms of today’s dollars as property and shares should (hopefully) grow at least as fast as inflation.

$200k is that pretax or post tax? That is a lot of money either way, probably 8 times the pension amount. Do you really need this much as the less you need the quicker it will be. Also consider that there may be plenty of ways to make it more tax effective.

5.5% may be a high figure to assume for dividends. I would use 4%
Growth for property and shares might be higher

But assuming 4% you would need $200,000 / 4% = $5mil worth of property at today’s value. This is unencumbered property or shares, other than your main residence.
At $250,000 per property that would mean 20 properties fully paid off (or part property at part shares).

How do you get 20 properties? It will be very difficult to borrow enough to buy say 3 or 4 unless you are on a very high income. So you would need to save like crazy, add value, and perhaps sell a few along the way to get capital to buy more. You can speed things up by improving and selling main residences tax free along the way too (making sure you don’t do this so it amounts to a business).

Remember that CGT is half of income tax generally, and there are many concessions so it is a great way to build up capital over time.

Very lucky!

go see a lawyer

easiest and cheapest way is to not be a director of the trustee and to not give any personal guarantees.

Other ways are to create charges or interests in the property which could take priority over creditors. Lots of issues though

Resi is generally always easier because residential loans are easier. But commercial loans are not covered by the NCCP Act so there may be arguments that these loans are less strict.

Structuring will depend on the circumstances such as strength of parties, agreed split, financing ability,trust.

One I set up recently involved company owning property with 50% each owned by trustees of a discretionary trust. Builder family was a beneficiary of second trust. Company then entered building contract with builders company.

End result
Residential finance
50% profits able to get to builder.
My client retaining full control.

roughly 6 times annual income = very rough

Who knows why they didn’t contact you.

You don’t have many options – you are stuck with westpac so you need to convince them that you thought it was a 30 year loan. Suggest to your contact that you will make a complain to the financial ombudsman.

1. Dig out your original contract. You might need to apply again
2. They made an offer for finance which you would have accepted in writing.
3. commisison wouldn’t be more, but after 5 years they may get another if you apply again
4. ok
5. ok
6. 2k plus a 25 year extension?
7. ok

Adam – if you want advice on what ownership structure to use then you should seek legal advice from a lawyer only. There are a lot of non qualified persons out there giving incorrect advice – mainly accountants – so beware.

Not really sure what that means either Jaxon.

I am concerned that a poster has come on here seeking advice in relation to structure, you have come on and given some sort of comments verging on legal advice, albeit ungrammatical english – which could be due to rushing or being a non-native speaker, and then you offered to discuss further with the person. Yet you don’t appear to be a lawyer.

Then you have made some comments that the above advice was appropriate for you.

Not sure what to make out of all of this.