Thanks Terryw, that’s a useful example.
So would I be correct in thinking that this following scenario could work?:

Tom is the director of Tommo Pty Ltd which is the trustee of Tommo Trust.
Tommo Pty Ltd owns a property as trustee of the trust and the property is worth $200,000 at purchase with a loan of $160,000. The property has not changed in value and Tom cannot purchase another investment property because the banks believe he has maxed out his lending capacity.
Tom resigns as director of Tommo Pty Ltd and Tom’s wife signs up as the new director.
Tommo Pty Ltd can now borrow more money to purchase a new property because Tom’s wife is the guarantor and has no debt plus secure work as say a nurse and a 20% deposit on hand.

Is this scenario feasible?

So in Steve’s book (0-130 properties, revised edition) starting at page 172 he talks about how once he reaches his borrowing capacity he then re-structures his family trust and then approaches another lendor.
I read in another post that this is no longer possible?
Would another bank loan money if say the original trustee (e.g Trustee Company Pty Ltd) was sacked as trustee and another company was created and made trustee which in turn the directors would then be the guarantor/s? Therefore creating a new trust structure?

• This reply was modified 9 years, 6 months ago by  Tkpurser.

If the vic threshold for land tax bought by a trust is $25,000 then that is a huge amount of tax payable for ~4% over this value.
If the trustee is a company then are the company directors subjected to this tax? Is there any way around this tax if buying via a trust?