We can meet : Michael Yardney Event this Sat

[virgo]

Hiya

Is anyone from Somersoft going to this seminar this Sat? Free tickets available on this link...

http://propertymarketupdate.com.au/


I thought we could meet up and put some faces to names ....anyone interested?

i could wave a flag or something

 

[geoffw]

I assume you're talking about the Sydney event?

 

[virgo]

Want to meet? For Yardney

Yep Sydney one

 

[MTR]

Please keep us all posted, I am keen to find out what MY is up to and where/what he is buying etc.

Thanx

 

[johncheexyz]

Hi Virgo,
Thanks for the link.
Does it require Promo Code ? I click Proceed to Checkout, it costs $99.00 per 1 ticket ?

 

[esh]

I may be keen

 

[virgo]

My

Hi Virgo,
Thanks for the link.
Does it require Promo Code ? I click Proceed to Checkout, it costs $99.00 per 1 ticket ?

Code is metro2013

 

[devank]

Thanks Virgo. Hopefully kids sleep well on Friday night

 

[johncheexyz]

Yes it works. Many thanks Virgo!
This would be a great bday gift for my mate who's a fan of Yardney Also, I will ask him to look for a guy with SS flag.

 

[devank]

Also, I will ask him to look for a guy with SS flag.

Lady with a big smile which he can't miss

 

[Rixter]

Also, I will ask him to look for a guy with SS flag.

ssssh..what ever you do, tell him not to mention the war!

 

[divine]

Thanks. This will be my first Michael Yardney event and hopefully it will help in my decision for getting my PPOR and turning my current PPOR to IP#1 later this year.

 

[devank]

Again.. thank you to virgo for the free tickets
It was actually good.

This is something new I learnt from this seminar
1. Asset protection for existing properties under personal names without transferring into trusts.
Step 1: Create an Equity Bank Trust with a company as trustee
Step 2: Gift the equity to the trust (on paper)
Step 3: Borrow back the same amount from the trust (on paper)

These are my questions:
1. 20% deposit - Isn’t it still at risk?
2. Gift: Are there any implications?
3. Setup & running cost: Is it really worth for a say 1 Mil property?

Any thoughts?

 

[oracle]

These are my questions:
1. 20% deposit - Isn’t it still at risk?

You buy $100K property with $20K deposit and $80K bank loan. Your equity in property is $20K. This is what you gift to the Equity Bank Trust. The other $80K is loan to the bank. So to answer your question. No, the 20% deposit is not at risk as you have already gifted it to the Trust, so you don't own it anymore. Once the equity increases as the property rises in value, you just give another gift to the Trust.

2. Gift: Are there any implications?

Not sure.

3. Setup & running cost: Is it really worth for a say 1 Mil property?

Might be worth investigating.

Cheers,
Oracle.

 

[Terry_w]

Again.. thank you to virgo for the free tickets
It was actually good.

This is something new I learnt from this seminar
1. Asset protection for existing properties under personal names without transferring into trusts.
Step 1: Create an Equity Bank Trust with a company as trustee
Step 2: Gift the equity to the trust (on paper)
Step 3: Borrow back the same amount from the trust (on paper)

These are my questions:
1. 20% deposit - Isn’t it still at risk?
2. Gift: Are there any implications?
3. Setup & running cost: Is it really worth for a say 1 Mil property?

Any thoughts?

Accountants giving legal advice?

This is the old gift and borrow back strategy. What is an equity bank trust? Sounds like a fancy marketing concept.

How do you gift equity? You would be letting the trust, which would be a discretionary trust, take out a mortgage (registered or unregistered) over the house. But what is the purpose of the mortgage what does it secure? Usually a mortgage secures a loan of money. So if money has been lent to the trust the money belongs to the individual lending it.

This transaction would be attacked by s37A Conveyancing Act in NSW as alienation to defraud creditors.
It would also be an uncommercial transaction and could be attacked under s588FB of the Corporations Act if the trustee is a company. Maybe s588FE too - unreasonable director related transaction.

And most importantly s121 of the Bankruptcy Act - transfers to defeat creditors.

 

[Terry_w]

You buy $100K property with $20K deposit and $80K bank loan. Your equity in property is $20K. This is what you gift to the Equity Bank Trust. The other $80K is loan to the bank. So to answer your question. No, the 20% deposit is not at risk as you have already gifted it to the Trust, so you don't own it anymore. Once the equity increases as the property rises in value, you just give another gift to the Trust.


Not sure.



Might be worth investigating.

Cheers,
Oracle.

Gifts can be clawed back. Under the bankruptcy act gifts can be clawed back indefinitely if they were done to defeat creditors. This is what asset protection is about. So be careful when sending emails to accountants asking for asset protection advice as this wouldn't be subject to lawyer client privilege...

 

[devank]

I don't know anything in this area to make a comment. However, I was thinking "Surely a judge can see exactly what we are trying to get away... they won't be too kind".

 

[oracle]

Gifts can be clawed back. Under the bankruptcy act gifts can be clawed back indefinitely if they were done to defeat creditors. This is what asset protection is about. So be careful when sending emails to accountants asking for asset protection advice as this wouldn't be subject to lawyer client privilege...

Fair enough.

But what about gifts given over a long periods of time 5-10yrs when there was never any threat of getting sued?

The point is you don't go digging a well when you are thirsty. You start digging it well before.

Cheers,
Oracle.

 

[Terry_w]

Fair enough.

But what about gifts given over a long periods of time 5-10yrs when there was never any threat of getting sued?

The point is you don't go digging a well when you are thirsty. You start digging it well before.

Cheers,
Oracle.

The longer ago the gift is the stronger it will be. Generally over the 5 year mark is pretty safe.

 

[oracle]

The longer ago the gift is the stronger it will be. Generally over the 5 year mark is pretty safe.

Thats good to know.

It's just another strategy investors can use if they have significant equity all under their personal name to gift it to a trust even though they have no immediate threat to being sued. The earlier they do it the better it is.

Much better option than to pay stamp duty and CGT to transfer to new entity/structure.

Cheers,
Oracle.