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Sorry Jamie and Coastymike, I re-read that particular paragraph I posted, that Jamie refers to here, and it didn't quite make sense or come out how I wanted it to... But firstly, Jamie, if you read this thread, I am not after 'detailed investment advice' at all. I am interested in the...

Thanks, I think I follow that. GSJ

Hi Coastymike, I work night shifts so that is why my posts are at this time. I am not all surprised with your reply. Just mention a few laws, concepts, sections, cases and then leave all the pertinent questions unanswered and dumped into the 'too hard for the layperson to understand...

Why the silence? Silence... I must admit that the lack of direct answers/replys to some of the key questions regarding the HDT posed earlier, and recently, in this thread, is a bit unsettling... Is this still a valid/worthwhile/legitimate structure for those who are negative gearing with...

Just an aside, are there any lawyers on this forum who could comment about the HDT from their point of view??? There is an accountants' view bias to HDT's on this forum I think. GSJ

Just quoting myself here! I might be having this discussion with myself now, with more questions than answers, but anyway - can someone answer this question posted above previously??? Doesn't this leave 'you' in an worse overall position cashflow wise as the trust now has a bigger interest...

Financial Sense... Just another comment...I appreciate that the trust deeds are carefully prepared, but, just because you put something in a trust deed doesn't make it all legitimate, especially if it doesn't really make any financial sense - surely the ATO will see through this as perhaps...

Yes, I agree, and am still waiting to hear some convincing arguments otherwise... GSJ

Yes, annuities - a managed investment product that is a good example for what the SIU holder is doing here with the HDT. The 150k lump sum cost is like your negative gearing loss each year, and, you get a guaranteed income stream with this (?inflation hedged), but no capital growth/gains in this...

I too would be reluctant to alter the trust deed, particularly if it has been written by some smart people...but I wonder what these smarties would think of these suggestions? For those of you in contact with Chris Batten and his team, how does he justify redemption of units at a price other...

Yes, these are similar to the thoughts myself and NormH are having, if you read the previous posts... Dale has already commented that something along these lines would not be advisable, from his point of view, with respect to NormH's post. I am interested in others' views on this, as this...

Financial Advisor's Opinion It would be good to see a financial advisor's opinion of the investment in SIU's by the SIU holder. What would be your assessment of this 'investment product'? Would you advise someone to buy SIU's in this way for an IP that will be negatively geared? GSJ

Mry, ok, I agree, IF you pay off the loan principal too - this is the only way to pay off the asset if you are losing money by negative gearing each year - which people do. But the better approach usually I think is to have an IO loan, which has been discussed enough on this forum...

But we are talking about negative gearing for the unitholder with SIU's in this instance, and what is the point of negative gearing if there is no expectation of capital gain??? Ronin mentioned this at the very start of his thread, why would you do this if you knew at the beginning you were just...

I look forward to reading the replies on this thread today by proponents/supporters/users of the HDT, as at present, having re-read this thread and Ronin's thread, the inherent flaws of the HDT (when SIU's are issued for investment property with negative gearing) are becoming more apparent to...

A Solution to Redemption... Just a thought, if you do say that the redemption price must be the real market value of the investment property itself (as I had decribed in the previous post) at the redemption time, could you... Have in the trust deed something saying to the effect that: 'If...

The Problem of Redemption... Eventually, to use the discretionary powers of the HDT to your advantage, you need to redeem the SIU's, and also before the actual sale of the relevant investment property. Redemption at the cost price of the SIU's would seem to be ideal, or maybe a little above...

Market Value??? In determining 'market value', I understand there are various methods for this. Can't the ATO just ask the SIU person or the trust to get a property valuer to value the relevant investment property at a 'fair and open market value'??? Isn't this the most accurate way of...

Almost understood... Hi, Just re-read those private rulings a couple of times. So, referring to Alex's question to Dale above, if you do have a trust deed that allows this - ie, meaning that the unitholder does NOT have a 'present or fixed entitlement to the trust income', then in this...

Just another thought re. the 'PIT' - if with this C&N believed you could distribute all income to other beneficiaries from day 1, with no attribution/apportioning of income to the unitholder at all, and, still claim the full interest expense as tax deductible to the unitholder - that would seem...