Lomas adds to structuring confusion

ps. I make some terrible spelling and grammatical mistakes don’t I!

CATA – you asked what our strategy is. Here’s the situation:

We’re a couple of DINKS – 40 and 44. Work full-time in fields unlikely to attract litigation (yes, I know all the “but what if” arguments – but I’m just saying we’re not obvious targets.)
Both now in the second to top income bracket following tonight’s budget, both in the same public service super fund (not many $$ in mine!).

GREAT START.

Hubby wants to work until retirement about 13 years away, but would like to go part-time in 8-10 years.

GREAT PLAN.

I want to go part-time within 2 years and completely give up the day job within 5 years, with the goal of managing a property portfolio and also doing some residential developments down the track. (have renovated three houses so far, including contracting work on a major reno)

LOTS OF WORK IN THE NEAR FUTURE, GOOD TO SEE.

I currently manage our two investment properties – both negatively geared, but one is almost positive (in my name) and the other should be positive within 5-6 years (in hubby’s name). Both with interest-only loans. May sell the property that’s in my name once I go part-time, to free up some cash.

HAVE YOU CONSIDERED USING THE EQUITY AND KEEPING THE IP AS IT IS ALMOST POSITIVE?

PPOR with about $300,000 equity in it – is currently security for both investment properties. Additional income from studio rented periodically at back of PPOR.

All properties are with the one lender.

Primary goal with structuring is flexibility with income distribution so that we’re not handicapped when negative properties turn positive. Also perhaps the ability to transfer funds into our super funds?

DO SOME RESEARCH ON DISCRETIONARTY, HYBRID AND UNIT TRUSTS AND POSSIBLE COMBINATIONS OF THEM (JUST A TIP). TAHT LAST ONE IS THE KICKER (SUPERFUNDS) CAN BE DONE BUT CAN GET COMPLEX.

Do I want to be rich? Well, rich enough to finish renovating our PPOR, rich enough to indulge my love of overseas travel again, rich enough to buy a place by the sea, rich enough to have time to spend how I want to, rich enough not to be on the treadmill I feel like I’m on now, and eventually rich enough to put more into the causes and people I believe in.

SOUNDS LIKE A GOALTO BE PROUD OFF.