Hi Guys,
I’m looking at setting up a Trust and associated company to use for future property ventures.
Apart from the intial setup costs, I was wondering if anyone could give me an approximate figure on what it costs for maintianing a trust and company?
The main reason I will be setting up the trust is for purchasing and selling property developments.
Thanks for your help!
Rgds
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)Trusts are cheap to maintain. You may need to pay account keeping fees, and accounting fees – but these would generally only be about $100 or so more than if you held the assets in your own name.
Companies have ASIC fees each year – about $250 from memory.
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
I am looking at setting up same and spoke to an accountant yesterday.
Cost to set up was about $2000 and consisted mainly government and lawyers fees.
Ongoing costs include a $450 asic fee per year and then your accounting fees so all up about $1500 per year.
I was told to hold off till July 1 as it would cost $450 in Asic for this month and then again same fee for after July 1.
Cheers Russ.My accountant told me last week that an additional charge of about $400 would be needed to prepare trust accounts for finance lenders of future IP purchases. And this would increase by a few hundred bucks as props increased.
Anybody know of this?[confused]
lifexperience
LifeX, I reckon that would be lender dependent.
ie. not all lenders will charge the fee, and some lenders are actually ‘trust friendly’
Cheers
MelThanks Mel,
I notice you respond to a huge amount of questions from everyone. It is appreciated.[sunny]The fee the accountant was talking about was for HIM to prepare paperwork for lenders.
Has he made this up? Would lenders need P/L statements, Trust Income reports or other stuff.
What does a lender require as far as documents go when a trust wants a loan. Would a guarantee from me bypass this?
[cowboy2]
lifexperience
If you are applying for a full doc loan, then you would need to show full tax returns for the trust and Profit and Loss statements. If you guarrantee the loan – which you would have to do in any case, the bank may still want to see the icome statements for the trust if you are relying on this income to service.
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
LifeX, I would just find out from either the bank, or Terry or your own Mortgage Broker what paperwork the bank requires, and you should be able to prepare it yourself.
If it’s tax returns – well, you’ll have paid your accountant to lodge them, so there shouldn’t be anything more that he would need to do….. Sounds a bit strange to me…
Cheers
Mel
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