You're relatively young, have a load of equity in your PPOR, and no investments. You're most likely going to be borrowing 100% for investments. i.e. you're unlikely to have any positive taxable income to distribute anyway. Losses in a family trust cannot be distributed.
At the same time, having assets in your own name will be beneficial because you can offset losses against your personal (high) income.
You're more than likely to buy multiple assets over time anyway, so you really have to ask yourself whether it makes sense to start with structures for the purpose of streaming income, when there might not be any income to stream for a long time, versus being able to offset losses against your own income in the short to medium term.
Thanks Alex, I've never thought about it this way, the last paragraph answers my question.
I think you are jumping ahead? no?
Go back to TerryW's first post, where he says start at the end and work backwards.
Figure out WHAT you need to reach your goal first.
THEN figure out the best way to achieve it.
Once you know that you can discuss with an accountant the best structure to reach your goal.
There are many ways to skin a cat.
Hi Blacky, I might be missing something here, since a few posters have highlighted this point now.
Doesn't the objective (80k pa passive income in 20 years time) automatically implies that, assuming residential property yields, I will need an equivalent of 1.6m worth of IP paid off? To me it already answer the WHAT? I might be missing something here.
The HOW dictates how many property, what type, location, market segment, etc. It could be 1 IP or 12 IP, fully or partially paid off. The different ways to skin the cat, that might be suitable in my scenario, is what I'm hoping this thread will throw at me to think about and research
Ramssss, you mentioned that you were time poor (working long hours and weekends). Would your partner be in the same position?
If he/she has some capacity, they might be able to assist in a) identifying areas or properties for investment), or even help coordinate any property developments. I know of some stay at home mums who've done exactly that (hubby draws the income from the daily grind and DW manages investments or the build process).
Just something to think about.
Thanks Finrod, I am hoping DW could help me out at some point. But at the moment caring for two toddlers means she's prob working harder than I am. Deep down though I know she does not have the same interest/passion in property, or investment in general. I might have to continue carrying that responsibility in the short-medium term. If the kids are older, who know, hopefully she can do the project management work.