Hi all….
I am just in the process of commencing the long exciting path of property investment.. Conscious of structuring correctly…
i am thinking of either setting up a family trust with a corporate trustee or a new land tax unit trust…
The investments will be for my wife and I…
What are people's thoughts and/or recommendations.
Any guidance would be greatly appreciated…
I meant discretionary family trust or NSW land tax unit trust (family unit trust)
Tks. Very confused.
i just want to make sure I get the best benefits and as little negatives as possible without hitting the borrowing limit which can otherwise take place… Now starting to think a hybrid trust (with product ruling)
soo confused
Richard go that route and your finance options become less and less.
All you need is to hit serviceability wall with one lender and you could struggle to find another one come to the party.
I can only thing of half a dozen lenders that would knowingly accept a deal under an HDT structure.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Grrrr… I like a family trust because of simple finance which allows the ability not to hit the borrowing cap of other paths but don't like the land tax implications, ie no threshold in NSW…
starting to pull my hair out!
tks for ur guidance very much appreciated…
I assume u also hit the borrowing wall under a family unit trust? Get the benefits of the tax free threshold… Well at least I think.. A little confused as it apples to unitholders who own property because I think they then lose their tax free threshold in NSw even for their poor… Or I could be wrong?
Hi Richard
If you are in Sydney go see Terry W on here. He has a couple of weeks wait time at present, but well worth the wait.
D
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
richard1983 wrote:Grrrr… I like a family trust because of simple finance which allows the ability not to hit the borrowing cap of other pathsRichard, what do you mean by this? This is not the case from my experience
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard i hate to say that is simply not the case and is a myth that many investors when they first start out believe in.
Regretfully it is simply not true as every lender requires every Trustee (and with some lenders every Adult Beneficiary) to guarantee the loan and then going forward every lender requires you to disclose any previous guarantees.
The exception with certain lenders is where you provide a personal guarantee in your capacity as a Trustee when doing a loan within a self managed super fund.
Tread carefully going forward as all that glistens is not gold.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I was sure that is what read in 0 to 130 properties in 3.5 years…
Tks Richard…. Starting to see that….
Richard i think Steve has subsequently corrected that comment as it has been asked 101 times.
Be surprised how many forum clients i arrange finance for who believe that is the case.
In saying all of this there are some lenders who are very pro investment and have excellent serviceability models and other that arent as forgiving.
All part of getting structure right.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
richard1983 wrote:I was sure that is what read in 0 to 130 properties in 3.5 years…A fairy tale…
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And all part of the reason that you need to make sure you have
a Great Finance Broker
a Great Accountant
a Great Lawyer
trying to save money by doing part of it yourself or utilising professionals who have not done it themselves can often end up costing you more money.
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
Certainly getting the structure correct from day 1 is paramount when you enter the world of property investing however make sure that you costs involved are relative with what you intend to achieve.
I have seen many an investor set up an expensive structure only to find out they purchase a single property and then focus on paying down equity or find that the finance options available are not as they thought.
Certainly seek the advice of an Accountant but also suggest your Broker is aligned with your set up as otherwise it can get messy and expensive.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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