Do i need set up trust account for what i have.

Hi all, really need some advice from you guy.

Do i need to set up trusts account for what i currently have? For asset protection and other benefit from trust.

I had a fammily with 2 kid, so asset protection is something we might need.

Basicly, we bought 2 property recently last year, one under my name, one under my name and my mom. Both are now IPs.

I just currently won an auction today for another property, this will be another IP. We will hold this for a while, apply for a planning permit to construct 3 townhouse. Depend on our budget and market, if think go well we will prob sell 2 and keep 1 when market is right.

Currently also apply for a plannign permit to construct 2 townhouse for mom, if permit approved, probbaly will buy one of her as well.

As iam a building deisgner, know abit about planning and design, my goal is to keep buying old house with decent land size, get planning permit and sell or hold and build

Curetnly work for someone, but dream of one day working for myself. .

I think It get to a point where we seriuosly need legal advice and tax advice. Any recomendation ? iam living in Melbourne.

Thanks guy. Awsome forum, learnt alot from here and still learning.

 

Why do you think that you need a trust? What do you want to achieve by having one/several?

As per @Rolf Latham - seek advice.

 

What do you want protection from?

 

Basically my goal is to put each of development in separate trust just so if one project go wrong, will not affect other project.

 

Thank you Rolf

Do you know any property lawyer and good tax accountant in Melbourne ? i need to talk expert now.

and you are right, need to set up right structure now, otherwise, gonna be a big mess in future.

 

That is a good idea but sounds like you already own these propertied. Are you prepared to wear the transfer costs and consider the claw back laws?

 

i only own 2 at the moment, will it be expensive to transfer these into trusts. Those are just unit, and have no potential to develop, purely just capital growth investment.

The one i bought yesterday, i just signed the contract and put my name and nominate, hopefully i can set up trust quickly and revise the contract of sale.

Sorry what is claw back law?

 

Transfer stamp duty will apply and it will trigger cgt too. New loans needed if they are Mortgaged.

Did you seek legal advice on nomination? This has significantly weakened any asset protection and you could be up for stamp duty twice.

Claw back laws allow creditors to claw back assets on transfers.

 

Oh in that case, may be just leave that 2 as it is then, too much problem if trasfer.

I have not, just engage conveyancer. May be i can ask the agent to prepare a new contract to sign when i got my trust set up, hopefully they agree to do so. So no nomination.

Do you accept new client yet Terry ? Or would you please recommend me some good property lawyer and accountant in Melbourne if you know any ?

 

Goodness me! Using a conveyancer when you are concerned about asset protection. I suppose you have already paid the deposit too?

 

Yes i did put 5% deposit after the auction .

 

Buy three properties then... seek legal and tax advice.

I dont share the CGT views expressed. Intention is to buy the property to develop and sell for profit and the very nature of this thread expresses that with clarity. The short term rental does not mean its a CGT asset. Typically enterprises pay GST when they sell new residential premises and ....its not a CGT asset. All the profit in one name ? Lack of planning is quite evident.

I would argue the asset protection risks apply on a project by project basis for project issues. Only issue they are parlayed. You complete first one OK but hold some. Then do second. Keep more. You are incrementally in a worse position BUT it diminishes if you sell all first and second batch. You cant do three projects at once after all

 

Then youve already signed a contract.