Strategy

Can anyone point me to a good resource on strategies for property ownership?
I would like to go partners with some family members and buy, maybe renovate, rent and hold properties, gradually building up a portfolio (with flexibility to "wrap" properties if required).
Is it best to do this via a partnership, company or trust? What is the best structure to minimise tax these days? What is the best structure for asset protection?
I saw in another post that banks/mortgage insurers may require >30% equity in property to waive mortage insurance if it is to be owned by a trust. Is this true and are there other hidden costs like this in adopting a particular structure?

...sorry for just blurting out all these questions here.
 
Hi Andrew

Originally posted by AndrewC
Can anyone point me to a good resource on strategies for property ownership?
I would like to go partners with some family members and buy, maybe renovate, rent and hold properties, gradually building up a portfolio (with flexibility to "wrap" properties if required).
Is it best to do this via a partnership, company or trust? What is the best structure to minimise tax these days? What is the best structure for asset protection?
I saw in another post that banks/mortgage insurers may require >30% equity in property to waive mortage insurance if it is to be owned by a trust. Is this true and are there other hidden costs like this in adopting a particular structure?

...sorry for just blurting out all these questions here.

Typically, there is no "best" structure . . . there are many options and one will fit you, your circumstances, and your needs a little better than others.

When there are are multiple parties involved, it is often a good idea to use a Unit Trust. This allows each party to own units in the structure just like they would with shares in a company. Each party might own their units in a family partnership, family trust or even in single names depending upon their own needs and circumstances.

Partnerships are dangerous because of the liability issues.

Good luck

Dale
 
What do the big boys use!?

It seems to me at the moment that the investment property ownership structure offering the most benefits, and least disadvantages, is a hybrid trust (fixed entitlement to capital, variable entitlement to income) controlled by a corporate trustee (for limited liability).
I know trusts are still in the firing line but I understand legitimate family trusts are still ok!
Does anybody have a take on this?
 
Hi

The big boys use family trusts to own their assets and wealth. They use unit trusts (owned by respective family trusts) to enter joint ventures with other players.

Cheers

Dale
 
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