No problem at all. Yes, I'm an accountant based in Adelaide, and we have clients all over Australia. When you're ready to set up a trust, send me a PM, and we'll go from there.
Dan
Just be careful as many lenders require that all Adult beneficiaries (THATS right beneficiaries) Guarantee the loan.
Your mortgage broker should be able to recomend lenders that have less onerous requirements and costs when it comes to Trust structures.
Richard Taylor | Australia's leading private lender
Hi Richard,
Is this because of the current conditions in the market, or has this always been the case?
Having all adult beneficiaries guarantee the loan wouldn't sit well with me. Even though I'm confident in my ability, putting others at risk for the sake of my own benefit is a huge concern.
Is it possible to have all these matters sorted out, like a pre-approval through a trust (without all adult beneficiaries as guarantors) before making an offer on a property?
I don't think it really matters what you invest in at the moment as neither property nor the share market has done well over recent times. If you feel you would prefer to invest in property then I would go for the cheaper properties as if the economy continues to spiral downwards you have a smaller exposure, higher chance of being able to rent the property as more people could afford the rent.
I would not worry so much about the negative gearing. I think it is a bit over rated. Negative gearing just means you are making a loss. Can you think of any business that tries to make a loss? Didn't think so.
If you can get 2 properties positively geared you have less to worry about if you ever find your self out of a job or in a lower paid position.
IN addition to that the cheaper the property the more people are able to afford to buy it when you go to sell and often the lower end of the market is slightly more protected from reduced demand because of the first home owners grants etc which are often around.
That being said, I would not just choose one based on the purchase price. I would consider everything about the properties such as location, potential tenants, strata fees and management, property condition.. the list could go on.
Hope my comments have been of some help.
Kevin Rudd
http://forum.thepropertydomain.com/Hi freelance, are you sure Richard meant rush in to set up a trust or NOT rush in to set up a trust? Can Richard reconfirm? It reads like a typo to me.
The cost of setting up a trust may be not much, mine was $1600 but thereafter, administering the trust means accounting / audit fees etc.
You need to ensure that any tax advantages are more than what it costs else you may end up losing money.
Your plan is not a bad one but do be aware that profits may be far smaller than you 1st think.
Good luck,
KYHi again, got confused between freelance and barnsee. The last part of my post refers to barnsee's plan to buy PPOR & renovate. And since you already own an IP, you'll be aware of the $ and cents.
KY
kum yin lau wrote:The cost of setting up a trust may be not much, mine was $1600 but thereafter, administering the trust means accounting / audit fees etc.
You need to ensure that any tax advantages are more than what it costs else you may end up losing money.
Hi Kum Yin Lau,
Yeah I was considering the costs involved a while back. But if I was to purchase entirely in my own name and then transfer to a trust later on I would lose a lot of money through stamp duty on the transfer of the title.
Setting the structure before hand and managing costs seems like the logical option for me.
Any opinions on this are welcome.
And thanks for the input Kevin(07)?
Cheers
You must be logged in to reply to this topic. If you don't have an account, you can register here.
