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  1. Terry_w

    Is trust more cost effective for this simple scenario?

    I had a client who purchase in WA before the boom a few years ago. He was on the top rate of tax. Wife was a stay at home mum. I advised him to consider a trust. He purchased in his own name to get negative gearing benefits. I forget the figures, but something like this $200,000 purchase...
  2. Terry_w

    Is trust more cost effective for this simple scenario?

    Yes it is one way - more straight forward I guess, but you have to die for them to take control.
  3. Terry_w

    Is trust more cost effective for this simple scenario?

    Another strategy is to just buy in own name and set up a testamentary trust in your will and have the property held in this post death discretionary trust (people are dying to get these set up!). There are extra tax benefits and asset protection benefits. No tax or stamp duty on transfer upon...
  4. Terry_w

    Is trust more cost effective for this simple scenario?

    Depends how you define 'best'. You are looking at short term financial benefits only here. Many other things to consider such as asset protection, income tax after a few years, estate planning etc.
  5. Terry_w

    Is trust more cost effective for this simple scenario?

    A trust would get a land tax threshold of $350,000 in QLD.
  6. Terry_w

    Is trust more cost effective for this simple scenario?

    Hard to generalise. First question I would ask is 1. Which state is the property located in? and then 2. What is the cashflow of the property. If the property is in NSW and the person is self employed and has already used up their land tax threshold then I would investigate a...
  7. Terry_w

    Is trust more cost effective for this simple scenario?

    Land tax is the first thing I consider when people ask me whether to buy in a trust. e.g. $400,000 land component property in NSW would be $6,400 in land tax every year if owned in a trust. If the person doesn't own other property, other than the main residence, in NSW then the land tax would be...
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