Opinions please………

et003,
I’ll answer the questions that I can.

What are your reasons for joining an investment club?
Sourcing properties, knowledge/education. Different clubs will have different objectives and purposes for their existence. I have recently joined one which is still in its infancy. Still feeling our way through. It would need top be clearly structured, well run and with a diverse range of people with different experiences, opinions and competencies.

Trusts – I have just recently set-up a trust for the purposes of future (and current) IP portfolio. After having done quite a bit of research, I think it is will be very much beneficial for me in the longer-term. Additional deductions, asset protection, flexibility for future family arrangements (ie tax effecrtive income distribution).

James

Hi ET,

Ultimately the purpose for joining a ‘club’ will determine whether or not they are useful to you.

If you want to create a group of likeminded people to share ‘war stories’ then you have a club here.

Alternatively you may find there are people living in your immediate area who have similar goals to you – these people can become your ‘club’. Sure the may be located in a different part of the world – but the desire to ‘improve one’s lot’ can be found anywhere. So in reality you may have untapped ‘wealth’ next door.

If however, you are wanting a ‘property location service’, as suggested by your second question, then that is entirely different.

Whichever ‘locater’ you use will invoke divergent opinions as many investors here are DIY investors and are happy, capable and have all the encompassing resources they need. You will also need to do your own ‘checks and balances’ to ensure the property suits you.

Additionally the focus of your investment strategy will determine the suitability of the locaters. Some locaters orientate themselves to their investing beliefs, which while perfectly legitimate, may not suit you. Hence it is important for you to identify what your focus is going to be.

Being an overseas investor can create some peculiar taxation implications depending upon your country and the tax relationships in existence between Australia and your current home. Another ‘curve ball’ in your whole situation will be how long you are going to be overseas and what impact this will have on your investment journey.

I recommend a surf of the ATO website to assist in this regard. http://www.ato.gov.au to help you in this area.

A good accountant will help you get the foundations of your journey right. A bit like building a wall – spend some time getting this right and you will increase your chances of long term success.

Some accountants for you to consider are;

Dale Gatherum-Goss http://www.gatherumgoss.com (Melb)
Nick Moustacis http://www.strategicwealth.com.au (Syd)
Patrick Thatcher http://www.rmgaccounting.com.au (Perth)

Sorry cannot help with other accountant references.

Hope this helps

Derek
[email protected]

Before i bought my first ip i talked to my accountant about trusts briefly…. she said that dont worry about it until you start getting +ve cf properties after a couple of years!

little did she know that was my whole aim from the start…ha ha ha (evil laugh)

haven’t told her that it’s happening now though

taz

1. No use
2. No
3. Don’t wrap
4. Depends where you want them to be really
5. Own more than 3 in own name. A trust is good if there are benefits via spreading income but as there is only my wife and I and we are already paying top dollar in tax there isn’t any major benefit to us via trusts.

If you’re after an accountant, I’d certainly put a call into Dale Gatherum-Goss – from what I’ve seen, he knows property and tax in Australia, so give him a call and see whether he would be a good ‘fit’ for your team.

If you want to read an article which he wrote, check out this wraps discussion paper report..
https://www.propertyinvesting.com/article04_07.html

Brent Hodgson
PropertyInvesting.com
Admin Manager

I’m going on a property buying tour!

Want to receive the e-mail diary of my trip, hear about some of the great Positive Cashflow deals I find, and perhaps discover some great opportunities for yourself? e-mail or PM me!

Anubis,
interested in tax-free capital distribution, tax-free travelling allowance on trust business (e.g. looking at holiday homes for investment), etc?
Apparently there is an individual in Aust. who recently received around $17,000,000 tax-free from a trust in one tax year – anyone know the facts?
Terry

Terence McMahon
HomeWin
Finance