We use a trust with a corporate trustee for our business and separate trusts with myself and my husband as trustees for our properties. If you are investing in Vic please be aware that if your trust has gross income of 75,000 or more the trustee will need to be registered for GST. This is why we keep 2 – 3 properties per trust. We intend to keep the properties long term so we have allowed for rental increases not exceeding the threshold ( hopefully over more than a decade).
You should always have your structures set up prior to purchase – if you need to change the entity after contracts have been exchanged, you may trigger a second lot of stamp duty. If you are in the process of setting up your structure when you find a suitable property, you can write on the contract of sale purchaser : (your name) and or nominee. Make sure your solicitor knows what's happening though.Steve advocates a corporate trustee but I can't see how he gets this past the lenders…even if they accpeted it surely the 2nd thing the banks ask for are personal gaurantees?
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