Too much income......

[danwatto]

@ Danwatto - will be looking for Sydney blue chip resi IP when I see the market turn...maybe 3-4 years?

Sorry I didn't see this was an old thread due to the new post it was in the recent threads

Market turn is hard to predict, but will be keeping an eye on it next 2-3 years to see what happens with Sydney when all the new constructions complete.

Also the downturn in China might see less foreign investment.

Rather than wait, I just buy in different capital city that had already turned and coming out of downturn. At the moment for me it is Brisbane.

Although I do agree long term Sydney has more land scarcity in the inner ring and better capital gains (but lower yields), so if you don't have the cash yet waiting is not a bad option.

 

[The Falcon]

No worries Dan

I view property through the eyes of an opportunist, rather than as a dedicated investor, so not interested in interstate, but I do have some areas in Sydney I like, and pretty clear idea of what I am looking for. Just a matter of time really...will wait for the heat to come off. Obviously, plenty of knowledge available through SS with a lot of posters who know what they are on about. I read a lot

 

[Terry_w]

Now I have some questions :

- We already have a trust structure with corporate trustee established to hold shares in my business. Is it wise to create another separate trust structure along with Pty Ltd for above purposes - ie. to grow assets ?

- how would income streaming (cash/fixed interest) take place ex this Pty Ltd to beneficiaries? back through the trust I presume, not via dividends to shareholder beneficiaries?

I am very keen for input from people in the know, so far we need all the dividend income to pay down our PPOR (our choice) but at some point that will stop and we need to invest. Accordingly, want to get my head around this now so I can discuss with my accountant.

Many thanks guys.

The trust only owns shares ina company which trades so could not be sued. So for asset protection reasons there is no need for a second trust to hold different shares. But it may still be a good idea for estate planning reasons.

A company can only pay dividends to shareholders. A trust would be shareholder so dividends could be paid out to beneficiaries of the trust.

 

[The Falcon]

Thanks Terry, this is the way its been set up

 

[Terry_w]

I also didn't realise it was an old thread!

 

[The Falcon]

Redwing has been thread mining again