I am very new to trusts so forgive me.
After speaking with grossrealisation at the Sydney discussion group, it got me thnking about a property we own.
If I set up a trust, can the trust buy and develop the property? If we wanted to keep the properties long term, should this be considered as to wether it should be a trust or just leave it the way it is?
We have just had the plans approved for a duplex. Among other things, I am thinking of the GST that wll go to waste.
How do I go about getting a loan for this purpose.
I am just startng on this train of thought so any advice would be appreciated.
Sorry if my thoughts seem to ramble.[biggrin]
Cheers
ToniHi Toni,
My thoughts are leave the high powered trusts for when your portfolio warrant it.
You’ll incur a whole bunch of set up costs and duty costs transferring the asset, along with a headache of signing a bunch of documents so the lender has proper securitisation against the title in the new legal ownership structure.
Who were you thinking of being the trustee for the trust ?? Person or corporation. If person, has it really achieved what you want….if corporation, who will be the directors and are you happy to incur the extra costs of that as well ??
Overall, the “trust thing” is a good idea, but like anything probably horses for courses. I believe it to be a tool that belongs in a large kitbag. I mean, syndications, private super funds and other high powered tools are also a good idea, but not appropriate if you are buying a $ 70K bedsit…if you know what I mean.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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