G’day all,
My first post, here goes!
I’m just about ready to take the plunge and invest. I’d like to do it through a trust, I would be starting with about 50k. Do banks or financiers lend to trusts with an individual as a guarantor or would the trust need to have a track record of successful property investment with a solid equity behind it??
If not, has anybody started out investing in their own name and then transferred assets over to the trust?
Also, can anybody recommend specialists in the set up of a trust, i.e. names of professionals that you’ve had a good experience with and can trust?
Anybodies thoughts or feedback would be much appreciated!
Regards.
A.McIntosh
Do banks or financiers lend to trusts with an individual as a guarantor?
->Yes they will, though you may find that a more commercial approach is taken (for example you will probably have to open up a business bank account, which has slightly higher account fees, thats about it though… nothing too hard at all).
Also, can anybody recommend specialists in the set up of a trust?
->Gatherum-Goss @http://www.gatherumgoss.com/ in Victoria.
Rgds.
Lucifer_auQuote:Originally posted by matca:
If not, has anybody started out investing in their own name and then transferred assets over to the trust?im also interested in this question as im purchasing properties privately in my own name, is it possible down the track to form a trust and put the properties i own into the trust?
thanksHi matca,
I’ve just setup a trust and bought (settle in 7 days) an ip through it. Lucifer covered the first couple, I agree on gatherum goss, that is who I used. I recommend Trust Magic by Dale gatherum-goss, it will give you all the reasons / info you need to make your decision on using a Trust, personally I think it is the way to go.
I set mine up from overseas and including getting comfortable with doing it etc. needed around 90 days. Allow 60 days from the “go” if you’re in Oz and it should be fine (don’t let it conflict with an IP settlement). I did mine concurrently and have made the deadline, but a few shorter finger nails!!
I use an ANZ GST business account for my Trust which avoids fee’s, sure other banks can offer similar.
wrt buying in your own name and then moving the asset to a trust, – I believe you’ll hit stamp duty and maybe CGT. In short, it’s not worth it to buy now and transfer later, if you can do it right from the start. Do the research on the Trust (you can read Trust Magic in a w/e, also heaps of discussion here and on the Somersoft Forum (hope it’s OK to say that!)). It won’t take long and you’ll not regret it.
Cheers,
Ralph
Hi,
I too am a new investor, and after reading the forum notes on Trusts have just received and read in 2 days Trust Magic. It is an excellent ,informative document and is definitely the way to go. I have an appointment with my accountant on Monday to set everything up, before I buy my first IP, as yes, it is costly to transfer over from individual to Trust. Happy hunting.Originally posted by pgrim:Quote:Originally posted by matca:
If not, has anybody started out investing in their own name and then transferred assets over to the trust?im also interested in this question as im purchasing properties privately in my own name, is it possible down the track to form a trust and put the properties i own into the trust?
thanksSelling to a trust is a change in ownership in the eyes of the law, as a trust is a separate legal entity.
This means stamp duty is payable as is CGT. If you try and avoid the latter and sell for the same price you paid for the property the State Revenue office will send youa “please explain” letter and you will have to justify the selling price as is not “an erms lenghth sale”
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auHi Ralph,
A few questions regarding teh trust you setup….
What was the total cost (and ongoings if any)?
Did you also setup a company to control the trust? Cost?
Will you have rent paid into the business account? And can you access that money any time via the trust, or only once per year?And finally…. where did you get “Trust Magic” from and how much did you pay?
Regards,
Linden GlenHi
It is very easy getting a loan for a trust with individual or corporate trustee. Not much different to getting a loan in your own name really.
Its probably not worth transferring existing properties into a trust because of the stamp duty/CGT issues. Just do it from your next proeprty.
Trusts can be setup for as little as $137 from http://www.cleardocs.com.au
Running a trust does not cost much either, just a tax return and some accounting. Some accountants charge $1100 per year to run them, others much less. If you have a company as trustee, it will cost another $1000 at least (as more than $800 goes to asic for their fees). Companies also have other fees anually – approx $350 at least.
http://www.gatherumgoss.com for trust magic, cost is about $99. – worth it.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Another trust specialist in Sydney with a knowledge of hybrid trusts is Nick Moustacas at:
http://www.strategicwealth.com.au
GP
Thanks everybody, info much appreciated!
Gettin’ there.
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