Hello all,
I am new here, although I have read Steve's books and am aware of many of his investing strategies. I am seeking some general advise on my circumstances, which are I think fairly unique!
I am about to inherit a reasonable amount of money nd at this stage will probably set up a trust. My initial intention is to purchase a house in Brisbane (where I live with my wife) which will have the ability to have a seperate fully self-contained part which we can rent out. Something like a two storey dwelling with an area downstairs that is able to be made fully self-contained. Our part of the dwelling will ideally be 3 bedrooms, 2 bathrooms with modern kitchen/bathroom so that it is desirable for us to live in. The intention is that the self-contained part will be one or two bedrooms and be suited to uni students; which therefore means close to PT, Uni and shops.
Ideally the rent from the tenant will be in teh range of $300-350/week with our effective rent being around $400 with this covering the expenses. Also we would plan on moving out in two years and would want the property to be positvely geared with both parts rented (say total rent around $800/week)
At this stage I have several specific questions however any other advise would be much appreciated:
- Should we be looking for a house that is easily converted to have a self-contained section (ie needs a kitchen to be built) or should we look for a property already set up as such?
- We would like a house that has a new or newish kitchen, bathroom, fittings and is freshly painted etc… is this better to purchase already done or should we look to do this as a renovation ourselves?
- How much should we loan… I am guessing 90% given the current interest rates.
- How much should we spend; I am thinking around $500k in a well serviced area (PT etc)
- Are there certain areas in Brisbane we should target/avoid with this strategy?
I am sure based on the responses I get I will have more questions! I look forward to advise and if anyone is/has done whaty we plan on doing would be very keen to chat further!
Kind regards
Barney
Hi Barney
Get legal advice on the trust set up. RPI on the forum here is a QLD lawyer.
You could settle the money onto the discreitonary trust and then borrow it back. Depending on the situation you may be able to set up a special trust known as post death testamentary trust which may have some tax concessions.
You then can purchase the house in your own name or another trust. This acheives great asset protection and tax advantages.
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
I think Darryl (RPI) has the goods on duel occupancy issues as they pertain to Qld as well. Not my area of expertise at all but I think DO's are a no go in good old Qld of late. Darryl might be able to overcome that if at all possible.
I'd be very interested to see what input the 'regulars' have on Barney's development strategy.
I love reading posts like this as my level of education is broad and generally the other users
show just how much goes into planning and execution.
I'll definitely be watching this thread.
All the best, Barney.
Seb.
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