Are hdt's the best structure to use for property investing?
HDT's
- Thread starter ronnieandkylie
- Start date
The best structure is an impossible question to answer simply.
Hybrid trusts have many potential advantages including potential asset protection and gearing benifits. With the right structure and circumstances Hybrids and other types of trusts can be very useful for forward tax planing as well.
The problem is that everyone has different circumstances, income, risks, needs, desires etc. What works for one per one person won't work for another.
Currently I'm doing a lot of work with Self Managed Super Funds. This can work really well for people who want to buy and hold until retirement, on reasonably good incomes and there's a huge benifit if you want to make volantary super contributions.
It's not a good option if you want to buy, renovate and sell, or if you like to refinance your property periodically, but you can use equity to secure more properties.
Everyone's different. To determine the most appropriate structure, you need to speak with an accountant. It helps to educate yourself in these structures to make sure you can ask the right questions as well.
Hybrid trusts have many potential advantages including potential asset protection and gearing benifits. With the right structure and circumstances Hybrids and other types of trusts can be very useful for forward tax planing as well.
The problem is that everyone has different circumstances, income, risks, needs, desires etc. What works for one per one person won't work for another.
Currently I'm doing a lot of work with Self Managed Super Funds. This can work really well for people who want to buy and hold until retirement, on reasonably good incomes and there's a huge benifit if you want to make volantary super contributions.
It's not a good option if you want to buy, renovate and sell, or if you like to refinance your property periodically, but you can use equity to secure more properties.
Everyone's different. To determine the most appropriate structure, you need to speak with an accountant. It helps to educate yourself in these structures to make sure you can ask the right questions as well.
A devils advocate is helpful
I approached my solicitor about setting up a HDT almost 2 years ago. We spent hours on the phone over three months. I had read Gatherum- Goss's book trust magic and followed his discourse with some members of this site.
In the end I did go ahead though some would argue the structure I have is more a HUT but there are some interesting discretionary components. As Pat correctly points out you need to tailor it to your specific needs.
My advice is do a search on HDT's on this site but first read Trust Magic and then employ a solicitor to act as the devil's advocate and crystalize your hybrid trust from this
I approached my solicitor about setting up a HDT almost 2 years ago. We spent hours on the phone over three months. I had read Gatherum- Goss's book trust magic and followed his discourse with some members of this site.
In the end I did go ahead though some would argue the structure I have is more a HUT but there are some interesting discretionary components. As Pat correctly points out you need to tailor it to your specific needs.
My advice is do a search on HDT's on this site but first read Trust Magic and then employ a solicitor to act as the devil's advocate and crystalize your hybrid trust from this
