Family Trust Help

I am looking into Family trust structures and wonder whether this would be a good idea or a bad idea.
Can anybody comment for pros or cons by purchasing this way with the following scenario.

Family structure is husband, wife, 3 kids (11,9,6)
Want to purchase IP approx. $600K then build a GF and rent both out which would probably be borderline positively geared.

 

An obvious one is that if it's not positive geared, any losses are kept within the trust and can't be negatively geared so you're out of pocket with no deductions in your tax return to offset them. This also causes issues for borrowing capacity, as many lender calcs include provisions for negative gearing.

 

Get some legal advice.
No way to tell without knowing the details.

See my tips for starters.

 

Neg geared / Pos geared (for tax not cashflow).... Depreciation can change this.
Sources of finance and impact on gearing
Land Tax ? What state
Beneficiaries and marginal tax rates ?
Estate planning and death
Asset protection or not ?
Type of disc trust depending on state for property
Non-Residency issues ? Some states are impacted.
Trustee issues - Understand why a company is smart ?
Duty on deed ?
Costs upfront and ongoing v's personal name/s
Thresholds for land tax.
Impact of guarantees on credit
and many other issues.

Why not a unit trust ? Maybe a ungeared unit trust and a SMSF involved ? ...Suits some but not all.

Its really not possible to define a use of a trust without personal legal tax advice.