Any one heard of a “Property Investors Trust” I just came across an article from Micheal Yardneys News letter.
There is our “Property Investors Trust†which is built specifically for properties taking into account the different land tax rules around the different states. It also allows the rental to be passed onto the spouse who is on the lower tax rate before the property becomes positively geared on its own accord.
For example our Property Investors Trust allows us to distribute a portion of the rental over time to the wife (if she is on a lower tax rate) and hence take advantage of her lower rates of tax without triggering capital gains tax nor stamp duty and at the same time increasing the negative gearing benefits to the husband (assuming he is on the higher tax rate). It also allows properties in NSW to retain its land tax threshold.
Our “Property Investors Trust†is the prefect Trust and the only Trust to be used for properties.
The reason why we have trade marked it, is because we have spent many years (over 16 years) and many thousands of dollars to perfect this structure for properties.
The Unit/Discretionary/Hybrid Trusts are STANDARD Trusts which accountants and solicitors have tried to ADAPT to properties but they were not initially developed to hold properties in hence they all have some disadvantages or short comings when used for properties e.g. Discretionary Trusts are bad for negatively geared properties or to hold properties in, in NSW as they lose their land tax thresholds.
The Unit Trust loses its cost base after the depreciation of the property is passed through to the unit holder and a Hybrid Trust is unusable for properties in NSW as they lose their land tax threshold unlike a Unit Trust which retains its land tax threshold in NSW and so on.
These standard Trusts were set up for use in other things such as Businesses and to protect assets such as shares etc but when adapted to property had their shortcomings.
Our Property Investors Trust was developed JUST FOR PROPERTIES and in fact we do not use them to hold other assets in as they are NOT developed for this.
-Thomas
“More Time To Snowboard”
I read the article too and was excited to find out how to set this up. Hopefuly Micheal can tell us how.[biggrin]
I think Michael has been “sworn to secrecy” see other posts on the forum..
;o)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks Red
I saw the other thread after I poasted this one.-Thomas
“More Time To Snowboard”
Hi nazzysmith0153
Have a read of the post ed chan or chan property investing trust.
If you can add anything let me know.
I am interested in what it is, not what it does.keep your hands in your pocket unless you know what your buying and ask to see the ruling and then check to see if the ruling was for the specific applicant rarther then the system or structure.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Yeah gross, Im a little sceptical of this one too. More importantly i dislike the veil of secrecy surrounding it.
Comments like
Our “Property Investors Trust†is the prefect Trust and the only Trust to be used for properties.
Initially concerned me, If it is as good as stated then I want to know why and if it holds any benefits for me. At this stage looks like nobody knows.
Having said that I am happy with my current structure. All im really interested in is to get an understanding of this “Property Trust”
Knowledge is power!-Thomas
“More Time To Snowboard”
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