Trust or No Trust - 1st IP ?

[PropertInvestor]

G'Morning !

I will be buying my first IP. Can someone please recommend what is best, whether to buy in personal name or in trust ? Then, please provide some pros and cons of trust.

Note: I tried searching similar threads as this is very basic question, but unable to find. May be you can redirect me to correct thread or some article resource on internet.

 

[RPI]

Hi
your would need a lot more info before people can discuss pros and cons. How long are you going to hold, fo/ Capital growth prospects. Returns etc etc etc.

 

[PropertInvestor]

Hi
your would need a lot more info before people can discuss pros and cons. How long are you going to hold, fo/ Capital growth prospects. Returns etc etc etc.

I will be holding it for long say 10years at least which I can see now. May be willn't sell at all. But definitely not selling it soon until unless some uncertain situation comes and I need to sell or I think there is some better strategy then what am currently on.

IP going to be +ve cf or neutral. Having plans to buy IPs, IPs as much I can. I see I can buy 4 in next 5years or may be more I get successful in during contracting jobs and depending on few other imp things as well. But don't count on exact numbers, I am yet to plan those after first IP.

Let me if you need further any info to help.

 

[alexlee]

are you aware of the difference between being +vely geared and +ve cashflow? How are you planning to achieve this? High yields, or a big deposit? What do you think the advantages of using a trust are and why, in your situation, do you think a trust is best for you?

 

[dreamgirl]

I must say that the banks are highly dubious about lending to trusts, especially in the current market.

 

[Rolf Latham]

My first question rather than go into pros and cons id say

What resources do you have for the first IP.

A HDT at 90 to 95 % IO wont be easy to get

ta
rolf

 

[PropertInvestor]

My first question rather than go into pros and cons id say

What resources do you have for the first IP.

A HDT at 90 to 95 % IO wont be easy to get

ta
rolf

- 10% of property price + backup money
- No debt
- Good salary

May be many more things, if you can ask me specifically what resource is needed I can reply.

 

[alexlee]

PI, do you know the difference between a familiy trust and a HDT, and the pros and cons of each? What do you expect achieve by using a trust compared to buying in your own name?