Hi everyone. I need expert advice as to which direction to head. Since 1987 my husband and I have purchased 5 x 4 bedroom rental properties on the Gold Coast which have all gained considerable capital gain. 3 are within 10km of the CBD of Surfers Paradise; 1 at Nerang and the other at Helensvale.
We both live and work presently in PNG and have to start looking for our exit our of here. All properties are presently in joint names and finally cash flow positive using the buy and hold method.
As we are both in our mid fifties, what do we do now….
1. Start a family trust and trf four properties and keep one to live in as the family home? But wouldnt this cost heaps in stamp duty and capital gains tax?
2. Refinance to free up more money for investing in cashflow properties
3. How do you find cashflow properties whilst here in PNG?
4. Any other suggestions welcomed with open arms.One thing we presently pay is land tax each which we detest. Dont mind the rates but this one hurts. Someone suggested purchasing three at a time in a trust means you avoid this.
We have done alright so far on mid range incomes and would like to do a lot better with the years we both have left to still invest.
It would also be great in retirement to think our family are not forced to sell as an estate but can keep growing the assets which suggests family trust.
Eager to read your replies from those who have been there done that….. [
]Hi aussie
You will definitely be up for CGT and more Stamp Duty if you transfer, so I wouldn’t advise to do that.
What you could do though, is set up a trust, refinance the properties you have to get some cash to invest, and lend it to the trust so that the trust can then purchase for you the cashflow positive properties.
If you have a surf around this site, there are a few people that are willing to act as spotters/bird doggers etc. to find the properties for you. If you’re that far away, then this might not be a bad option. Off the top of my head, Bear1964 is the only one who looks in Aust that is a regular on here. Minimogul and Westan seem to do the same for NZ properties.
Cheers
MelHi Aussie!!
Do you still have any loans owing on the 5 properties?
If you don’t you can use the titles you have (or the equity) as security to purchase a heap of positive cashflow proprties in the name of a company/trust, however, speak to a good accountant/structure spacialist. My wife and I have just set this up through The Mint Group in Sydney. Phone number is (612) 9299 7383 or email [email protected] We have 8 properties in our names at present and will be adding 3 more shortly, as we didn’t now where to start with regards to trusts. Our usual accountant who has been good for us is dead against trusts, however, what do rich peolple do? Set it up. Leave the ones you have in your name, why give money to the government for doing nothing! Just use the equity to buy more and more while you can! Good Luck.Land tax is unavoidable, unfortunately.
It’s payable on all properties that you own and don’t live in (at least that’s the case here in WA). Putting it into a trust or a company is not going to change things.
Cheers
Elysium-MDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
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