In terms of which name (my name versus trust) to put an Investment Property in, what would be the answer (or just main determining factors) in the the following scenario. Basically was just after the key factors re how things work here, so there I could go off an spreadsheet if need be. So:
- Property Value: $500k
- Overall plan: Buy and Hold (not sell)
- Retirement Details: Assume need to work for another 10 years, then retire.
- Work/Income: Assume $80k income during 10 years
- Assume no personal $$ put into the sale
- Rental Property overall is (at least in first year) running say at $5k loss per year (prior to tax benefit)
- Just look at financial
Don't include in discussion/comparison (i.e. keeping things simple)
* asset protection
* land tax
PS. so I guess I'm not sure how to do the comparison mainly due to I don't know how to work out data from the trust option (a) during working period how much negative gearing I could get if at all with a trust, (b) what financial benefits if any after retiring if it's in a trust compared to my name, (c) cost over the period maintaining paperwork for a trust. Assuming it would be a hybrid trust in this case being the best?
PSS. Whilst wanting to avoid asset protection in this scenario, I guess in the Buy and Hold there would be the "passing it on to children" say 30 years down the track. Not sure overall if a trust would help avoid cost, and if yes, whether this would really change anything once discounting back to todays dollars.?
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