QLD 3 years and 3 IPs in Logan. What next?

The other aim would be to protect the trust assets in case of any future bankruptcy etc. I.e. if I went bankrupt from a failed development project, wouldn't the house bought in a unit trust be treated separately and therefore safe from liquidation?

 

Who would own the units of the trust?

These are assets available to creditors.

 

Yes what you had in mind could work if you get something in a desirable location. When I was up at GC I also thought those 3 level walk-up units facing the water on Mermaid Beach could be something to keep for long term. Just not sure how the yield would be (prob crap due to water view = high purchase price). So that concept is similar to what you're thinking here.

Though you still haven't told us your budget

Cheers,
David

 

Haven't gotten that far yet but I'm sure something my accountant and solicitor can help with

 

Only a solicitor.

Unit trusts do give improved asset protection if the trustee is a company, when a tenant sues, but not if a unit holder is sued.

 

So what would be the recommended structure for someone whose aim is to minimize personal liability and be as tax efficient as possible? Unit trust with unit holder being a discretionary trust?

 

That all depends.
Either of the following
a) company with shares owned by discretionary trust
b) company as trustee of a discretionary trust
b) company as trustee of a unit trust with the units owned by a trustee of a discretionary trust.

The company will limit liability of the owner - i.e. it won't be you.
And the trust will mean there would be nothing to lose if you were to go bankrupt

But all this depends on the structure of the company and the trust, ie how set up etc and how the transactions are entered into. I have seen people 'operate' through a company, but been personally sued because they acted as if the company didn't exist.

All provide similar outcome except for CGT and land tax with the company.

AND, this is only the asset protection side, the other major thing to consider is estate planning.

 

Thats awesome work @John_S

 

I wonder how many people are really making money in Logan area, since 2013/2014

I mean real cash money not the equity then convert into loan then purchase more property type of cash profit.

Anyone ?

 

Taking out equity and converting it into another investment is REAL money. LOL

Its real money when the CBA deposit $50k into my account isnt it?

Issue with these forums is that too many **** talkers discussing things they actually have no/very little idea about. They have never been in Logan and they do not have an investment there. Its like the many discussions I'm seeing about investing in Atlanta and Detroit USA and the plethora of people talking crap.

Go there yourself, do your own investigation, do your own due diligence and have confidence in yourself regarding your analysis and potential. That is why I have just come back from a 3 week trip to the USA to look and analyse myself.

DO NOT rely on anyone on these forums. Alot of ppl talking rubbish

 

Sorry if i confuse anyone, I went up to Logan in 2013/2014 very often, but I struggle to find something I felt comfortably put down my money.

however, i really want to know if anyone make some profit from Logan area in the same period

 

I've been investing in Logan only for under 2 years. If I have taken out over $50k in equity in that time I FAIL to understand how someone can not. Unless they are totally crap house at choosing an investment or way way overpaid which in that case is no ones fault but their own.

 

Personally I am up at least 35% on my Logan properties so far.

More importantly I have several fully offset bringing me a more than decent cashflow stream. I can sit on them for the long forseeable future and wait for growth to happen rather than hope

This is the thing about investing in Logan or equivalent area. Its about quantity as much as it is about quality. Smaller loan amounts spread across multiple properties can be easily paid off/offset over time and compounds into significant cashflow. You have more choice and less risk if you need to exit and if you buy well, can make some really decent equity in the short term

You only need about 6 "average" Logan houses fully offset to reach $100k passive income

 

Discretionary trust with a company as trustee seems to be the most popular setup. You might want to consider going above the $600k threshold slightly as the cost of setting up and running a trust yearly may be more than the land tax you're trying to save

 

The threshold is only $350k in QLD for trusts.

 

I meant going slightly above $600k threshold in your personal name before buying in trusts

 

So how do you get those 6 average houses fully offset? (Please dont say start a business )

 

Sorry I would never buy any units in QLD, just my personal investing strategy, and you asked what I would do. In addition I stay away from suburbs where there is a lot of future land that can be still redeveloped.
Why not do what has worked for you, or buy next door to where yiu bought for larger land and future redevelopment potential or diversify into other states to take advantage of the cycles, perhaps looking at Adelaide?
Note, no state keeps growing at constant rate, right:

 

Sorry I would disagree, just analyse rents for units surrounding Brisbane many suburbs for the last two or even three years and you can see many came down, due to over supply, desirable areas or not, or whether low social economic suburbs.
Also, even if you would add extra say $100 pr week you would then be taxed on that income, so for me I prefer CG instead. I agree CF is required to hold but wealth is really created by CG which is not taxed if you never sell.
I suppose we have different strategies!
All my IPs in QLD did very well since the land component rose much more than if I held onto units, plus may be redevelopment in some future time (some are corner blocks over 1000sqm bought only 18 years ago). So I think long to very long term, and plan never to sell, but I must admit QLD OSR has not in that 18 years applied CPI to land tax threshholds hence I pay huge land tax bills.
No complaints, as I suppose it's a nice problem to have...

 

Buy 15 over time.....