Hi everyone,
This is my 1st ever post – having just been to my 1st Masterclass last Saturday in Melb. I am from Brisbane and recently divorced – so am lucky enought to have a clean slate to start my investment portfolio….(I have my one negatively geared property on the market now!!!)
I’d really like to go down the road of accumulating 20 or more properties in the next 12 – 18 months, but was wondering if, being single, I can do it thru’ the company/trust structure that Steve was talking about on the weekend, so as not to max out my borrowing capacity.
Can anyone point me in the right direction?
MW[bow]It is harder on your own, but can be done.
With Steve’s method of not maximing out, you will have to go to lenders which do not ask you on their application forms whether or not you have guarranteed any loans. If they don’t ask, then don’t tell. But they will see them on your credit report and may ask questions.
Terryw
Discover Home Loans
Mortgage Broker
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
MW
I’ve also just went to the masterclass in Melbourne. I suppose whether you are keen to reduce your tax bill. The reason being I am currently working and purchasing properties via trust structure. In order to reduce my tax bill, I am currently purchasing properties in trust name but the loan is taken out in my name, as the corporate trustee being the gurantor (so to reduce my tax bill on salary). However, doing it this name has its restriction which is I will be maxed out at some point, unless I take out the loan in trust name. As I find more +ve cashflow properties and I cut back on my working hours, I can worry less about reducing my tax on salary and then I can take out loan in trust name. That’s my plan
Good luck
Cheers
johnWant to join financial independence before 31 years old, currently 25
Hi John
Its not so much my tax that I want to reduce – but exactly the problem you say you will get to if you don’t take the loan out in a trust name. Boy I’m really envious that you are only 25 and know about forming a trust structure – how do I do that by myself and is it complicated/cost much?
MarliOriginally posted by marliw:Boy I’m really envious that you are only 25 and know about forming a trust structure – how do I do that by myself and is it complicated/cost much?
MarliSuggest you grab a copy of Dale Gatherum-Goss’ ‘Trust Magic’ for about $99 it will get you started in the right direction.
Dale is based in Melbourne but his book is relevant to all of Australia.
Then go and see a trust savvy accountant and talk about what it is you want to do, your situation and so on.
Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by jcls79:In order to reduce my tax bill, I am currently purchasing properties in trust name but the loan is taken out in my name, as the corporate trustee being the gurantor (so to reduce my tax bill on salary)
Can you clarify a bit what you’re doing there? You are a director of the corporate trustee of your trust, and the loan is in your personal name?
How are you then getting the loan funds into the trust to purchase the property? Is your trust a hybrid trust where you are personally buying income units, or are you lending the money to the trust?
In either case, if the loan is in your personal name, I don’t see what you being a trustee or director of the corporate trustee has to do with it. Also, unless the loan is in your personal name and you have purchased income units in a hybrid trust, you may not be able to claim interest deductions on the loan (ie. offset the interest against your other personal income).
That’s why I’m interested in clarification of your situation.
Cheers,
GPHi all,
This too is my first ever post and like Marliw, I am seeking the very basics about whether to set up a comany or trust in purchasing property.
I’ve heard pros and cons of both but would like to hear of your views or recommend a text or ‘savvy’ accountant in Sydney to guide me in the right direction
A company is not a good idea for holding appreciating assets. You would do better by looking into trusts to hold your properties.
Terryw
Discover Home Loans
Mortgage Broker
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
Thanks for the help so far.
To GP, I haven’t started my investment empire yet – so want to get it right from the start. It sounds like trusts are the way to go, not company. Thanks Derek for the book tip – will follow it up. Anyone know a trust savvy accountant in Brisbane (preferably northside?)
MarliMarliw
Terryw
Discover Home Loans
Mortgage Broker
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
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