Rodster. I had the same problem after i set up my first trust – the conveyancer just told me off for not knowing what I was doing.

Now I know that the trustee buys the property in their name on behalf of the trust. The title is therefore in the name of the trustee. The trust minutes document that the the trustee was buying for the trust.

However, I am not sure how the state revenue office know about it. Trusts don’t get any tax free freshholds on land tax, so i suspect there must be a way they find out if property is purchased in trust.

If your looking for advice, chris batten looks good (www.chrisbatten.com.au) – I have heard he charges about $400 per hour, or I would try Dale GG in Melbourne, as you can do everything via phone or email these days. Ditch your accountant if he is not sure-otherwise it could be costly.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

Trusts cannot distribute losses-they can keep the losses to be offset over future gains. But you may be able to get around this by using a hybrid trust and borrow to buy units in the hyrbid trust. The highest income earner would usually borrow to buy the units and claim the interest as a tax deduction on their personal income. the trust would make a profit (as there is no interest to claim) and this could be distributed to the lowest income earner.

Tax laws are changing all the time, so this may change.

For more info check out Dale Gatherum Goss’ Trust Magic and http://www.chrisbatten.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

Comdom

I don’t think it is possible anymore. You used to be able to get to the money by setting up unit trusts and the like, but the rules ahve been tightened. there is some good info on http://www.chrisbatten.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

Fudge

I’ve had a quick play around with the spready and it looks pretty good. One suggestion: what about some sort of summary page so that we can see the net overall cashflow from all properties owned etc?

And thank you for offering it to everybody.

Terryw
Discover Home Loans
North Sydney
[email protected]

Also consider if you can somehow use the new rental property for your business somehow – eg home office etc. You may hten abe able to claim part of the rent as a deduction.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

I’ve seen a few cases of parents gifting or lending 20% deposits to the offspring! It does happen a bit, but these days some people are worried that if they don’t get into the property market soon, they may be priced out as prices rise. So it may be on the increase.

Terryw
Discover Home Loans
North Sydney
[email protected]

Accountant Chris Batten has some stuff on superfunds and investment properties on his site:
http://www.chrisbatten.com.au

Comdom, offset accounts must be in the same names as the loan accounts.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Akyboy

I have a client that has become a millionaire ‘overnight’ by doing something similar. Buy land with a deposit bond or a negotiated small deposit and then sit back and wait. This guys land has more than doubled in about 12 months-and he had many blocks.

Are you looking at an area near the coast? it seems anywhere on the coast is booming (but this doesn’t mean it will continue to).

At or near settlement you could sell a few blocks and or settle using loans based on valuation. if it has grown in price you could even get 100% finance.

In NSW I think stamp duty is payable within 3 months of exchange of contracts.

If you sold, the ATO treats a sale to have occurred when contracts are exchanged, so if you have a 12 months to settlement you may get the 50% discount on CGT.

Terryw
Discover Home Loans
North Sydney
[email protected]

Most lenders will lend to trusts/companies. However, some won’t lend for trust/companies on the low doc loans-eg Suncorp and ING. You could still get these if you had a non corporate trustee and borrwed in individual names on behalf of the Trust.

Another potential problem is that recently some lenders are also requesting that if loans are in company names, then the company provide a fixed and floating charge to the bank as well-as extra security. This is a real pain in the arse if you already have a few properties in that company name.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

Yes LMi on the 100% lend would be around 2.5% of purchase price!

Terryw
Discover Home Loans
North Sydney
[email protected]