I plan to set up a Family Discretionary Trust for our next Ips . The more I read about Trust the more I get confused and wonder if it is the right decision. It’s good for asset protection but for buying a negative cash flow IP it may not be feasible.
Unlike other states, in ACT we claim Stamp Duty/solicitor’s fee at the end of the 1st financial year . For a $500K property the stamp duty will be over $20K, land tax : $4.5K, Rates/water : 2.5K . If we put in $100K and with around $400/week rent we will have to put in approx $18K /yr before tax. It means the Trust will be $40K in red after the 1st year.
I’m still not 100% sure but we may renovate and move in that house in 3 years time.
How long does it take to set up a Trust and is there any good accountant in ACT who can assist us? I think my accountant overcharges a bit.
I would greatly appreciate your advice.
Regards
Huey
Unlike other states, in ACT we claim Stamp Duty/solicitor’s fee at the end of the 1st financial year . For a $500K property the stamp duty will be over $20K, land tax : $4.5K, Rates/water : 2.5K . If we put in $100K and with around $400/week rent we will have to put in approx $18K /yr before tax. It means the Trust will be $40K in red after the 1st year.
I’m still not 100% sure but we may renovate and move in that house in 3 years time.
How long does it take to set up a Trust and is there any good accountant in ACT who can assist us? I think my accountant overcharges a bit.
I would greatly appreciate your advice.
Regards
Huey