Forum Replies Created
Successful Trust Management (New Edition)
Asset Protection Planning And the Administration of Trusts
Ross Holmes
http://www.reed.co.nz/title.cfm?titleid=3174Appears to be a NZ published book
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Another thing to think about is if they are going to be borrowing money via the trust. It is usually the trustee that has to guarrantee the loan, therefore having just one trustee will mean they are the ones taking the risk in this regard too. Not good risk-wise and not good from a serviceability point of view either.
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard is wrapping professionally as a business, whereas I only dabbled in a few. It certainly can work, if you are prepared to put in the effort.
I did purchase Steve’s wrap kit and think you probably should buy this if you are serious.
I think the biggest hassle is the quality of the tenants. Some just don’t want to pay occaisionally. Others are always late etc. You have to factor this in and develop strategies to avoid it.
When I did it the market was growing fast. Most of mine had cashed me out within 2 years, and their properties had doubled almost. I therefore missed out on most of this capital gain in return for a relatively small positive cashflow. I had a small profit and could have purchased more properties to replace those ones, but the market had jumped so much, it would have required a much larger deposit to get back into the market – eating up most of the cash released.
Now the market has slowed, so the cashouts should take much longer to occur.
Other things to think about are:
– difficulties in borrowing
– bad publicity
– legally smart wrappees who may take you for a ride.Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Technically you could have to disclose the whole debt to the lender on each loan application. Even if the loan was split in to two, you each would be responsible for the whole loan if all the other 3 decided to stop paying.
Having a trust etc, would not help in this regard.
From an equity POV, the place is owned by all 4, so if you wanted to use this proeprty as additional security for a new loan, all 4 would have to consent. This would also reduce the equity left over for them to use.
It is a messy situation that many people find themselves in, including myself.
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Bris
Try Julia at http://www.bantacs.com.au
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have done some wraps, but would not do them again. The returns are too small for the hassle, and you lose out on any capital growth in the long run.
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A hybrid trust may be worth looking at.
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
have a look at http://www.lawcentral.com.au
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Bris,
That may be the case, but I would get a second opinion from a good solicitor.
Terryw
Discover Home Loans
Parramatta
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
He must be good then. Can you get on a waiting list?
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You could possibly offer them a fee for any sucessful applicant.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
are you sure about the lending? Check out the postcode at:
http://www.pmigroup.com.au and look for the location wizard. You probably could go as high as 95%Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by Bris4171:Dazzling,
Regarding your “Point 1” can you confirm (or not) my understanding:
Currently I have 2 properties owned by the same Fam Trust and hence suffer from the compounding regime, huge land tax bill!!!
So to applying your point 1, if the trust sells 1% of one property to me then these two props are treated as having 2 different owner entities , and hence each gets its own land tax bill thus avoid the compounding regime ??
Is this correct ?
ThanksBriz
Did you know it is possible to split a discretionary trust into two identical trusts each holding one property? And it may be possible to do without major stamp duty implications and no CGT.
Speak to a good lawyer. For a cost of maybe $1000 you could save a fortune.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes, how will they get funds for the construction?
I suppose they could pay cash, but if they had the cash for that they would probably be able to get finance for the land.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If your option contract allows it, you maybe able to assign the option to the new purchaser.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A wrap is where you sell a property that you own on an installment basis. Property has been sold, but is being slowly paid off.
A lease option is where you sell a option to purchase to the tenant. Property remains yours.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Dazzling
For what its worth, i recall from my studies that contracts do not have to be in writing to be enforceable, except those contracts dealing in land – ie. sale of land, mortgages, and tenancy. Therefore if there is no written contract, then there is no contract.
So I think you need to quickly take the matter to court, get teh court order, then get the sherrif etc to remove her. But as you know this would likely take a few months.
Maybe you could sue her for loss of rent if this causes the new lease to fall over.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
pmi will do most suburbs with a postcode, check out the location on their website at:
http://www.pmigroup.com.auTerryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Interesting Milly
I had some clients about a year ago, 3 of them who owned a property jointly in a trust – or at least they thought they did. Their solicitor made an error and the title was registered in their names instead of the corporate trustee. They had no idea and had been doing their tax returns etc as if the trust owned the property.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
