All Topics / Help Needed! / What did other people do when building portfolio?
Hi everyone can you please shed some light on this for me. Did most people start off buying IP's in their own name first then move onto buying in a Trust?
I heard that if you buy in your own name you have access to more lenders as opposed to a Trust which has only a few lenders?
What did most investors do?
Just because i am thinking of trying to build a portfolio quickly before i then buy into a trust.
Hi PosEnterprises,
Another issue is that if you make a loss in a trust, that loss cannot be offset against any personal gains. I know that ideally we wouldn't make a loss but we have a property that is making a loss (the portfolio is not making a loss overall) and we were told by our accountant that you want anything making a loss in your own name and anything making a profit in a trust.
Regards,
Check out http://www.tridentpress.com.au
There's a great book on there called The Tax Solution.
It has a chapter or two related to trust structures, their benifits and reasons for establishing them.
If you are not in a high risk industry where you are likely to be sued, personally is probably the best way to by IP in the beginning. You can right off loss against your income and it is a bit easier to get finance. Once your port folio builds and you build a relationship with your bank manager, you could look at establishing a trust to purchase any new properties in.
There are so many opinions on the topic and good arguments for both. I'd recomend educating yourself as much as possible before buying your first IP. After ll, it's your money.
All the best with your endevours.
Gav H
Seek professional advice man….
To correct a couple of previous posts:
1) I heard that if you buy in your own name you have access to more lenders as opposed to a Trust which has only a few lenders?
Hate to say this is not correct.
2) Another issue is that if you make a loss in a trust, that loss cannot be offset against any personal gains.
This is only the case when the property is purchased using a Discretionary Family Trust. I would be thinking about switching Accountants.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:To correct a couple of previous posts:2) Another issue is that if you make a loss in a trust, that loss cannot be offset against any personal gains.
This is only the case when the property is purchased using a Discretionary Family Trust. I would be thinking about switching Accountants.
Okay I will check out with my accountant whether I misunderstood him. Thanks for that.
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