hi my name is craig and i was wondering if i could get some ideas on the best way to buy properties with 2 freinds.so in total there will be three of us buying postive geared properties.hopefully around cairns. i heard the best way is some sort of trust.any thoughts would be appreciated. thank you craig
Biota1 – first things first – welcome to the forum.
May I suggest a search for questions you may have first. There are a few people here who seem to be gurus on trusts.
Searching will get you started, from there……the sky is the limit.
“Looking forward to the day when I can tell the boss where to go”
Craig,
Assuming your friends are not family members, you could perhaps look at some type of unit trust, where the rights of each person are fixed by the units they buy.
As well as searching this forum, search the Somersoft forum at http://www.somersoft.com.
And for an overview of trusts in general, a couple of good books are Dale Gatherum-Goss’s “Trust Magic” at http://www.gatherumgoss.com and Nick Renton’s “Family Trusts”. The latest version of Renton’s book was only published a few months ago.
Ultimately you’ll need to see a good accountant, but I think reading up on the topic yourself first is highly beneficial.
GP
Craig
You could do a joint venture without the complexity of a trust, this is where each of you form a contract specifing your share in the deal, your solicitors can do this.
I also noticed that you are in Melb, Dale Gatherum Goss as mentioned above is a sensational accountant (I travel from Sydney to see him – in a professional sense of course[blush2]) he is a trust guru but generally a top accountant as are his team.
Seek “GOOD” professional advice – that may mean seeing more than one accountant and solicitor – before you even breath on a deal, you might be mates now but what about in 1, 5, or 10 years.
Get your structure right now, and prepare a plan such as how long are you going to be a team, what are the indicators that will signify a time to sell etc.
Get your mates to become members here and start benefiting from the valuable advice that is available from many experienced investors.
Cheers
Leigh K[biggrin]
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