Strategy

[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.

 

[DaleGG]

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

 

[AndrewC]

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?

 

[DaleGG]

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