Hi,
to continue this, I will also add that many people purchase just an income stream with the understanding that there is no capital growth involved. ie I buy and annuity from an insurance company for $10,000/year for 20 years and it costs me $150,000 the insurance company has just chucked your money into an interest bearing deposit and at the end of the 20years they are hoping that it has earned enough interest to cover their liability, they still have the CG on the rental property that they chucked your money into and you are not entitled to it.
So why can't people just invest in my trust for the rental returns and the possible future growth of the rent on that investment and have no claims to any CG
I am just trying to open up the thinking here to see if it happens elsewhere, that people do invest for income stream only and not CG so why can't that apply here?
cheers
Norman
to continue this, I will also add that many people purchase just an income stream with the understanding that there is no capital growth involved. ie I buy and annuity from an insurance company for $10,000/year for 20 years and it costs me $150,000 the insurance company has just chucked your money into an interest bearing deposit and at the end of the 20years they are hoping that it has earned enough interest to cover their liability, they still have the CG on the rental property that they chucked your money into and you are not entitled to it.
So why can't people just invest in my trust for the rental returns and the possible future growth of the rent on that investment and have no claims to any CG
I am just trying to open up the thinking here to see if it happens elsewhere, that people do invest for income stream only and not CG so why can't that apply here?
cheers
Norman