Ownership structure for multiple properties

Hi all,

So I'm just about to purchase my first property (an investment property) - note, I don't own my own home.
I'm considering whether I place this property in a family trust vs purchasing in my own name.
Some considerations:

• I'm purchasing a property in a beach location in Victoria 50/50 with my brother-in-law. We will be subdividing and building a duplex
• I'm currently single, so have no beneficiaries as such that would currently benefit from owning in a trust, but my plan would be to have my own family some day (so I could therefore benefit from the income-sharing aspects of a family trust)
• I plan to purchase multiple investment properties in the coming 10 years (I'd like to work up to a portfolio of 5-10 properties

The outcomes I'm looking for:

• Tax / Stamp Duty / CGT minimisation
• Potentially being able to distribute investment property income to a future family I may have
• (one day) inheritance planning - being able to transfer these properties to my family once I'm gone
• Note that asset protection is *not* something that is really important to me at the moment, however, however, I do see the benefits.

I know that transferring properties between your own name and a trust triggers CGT and stamps, so I want to avoid that.
One potential way forward that I'm thinking:

• Purchase this first property in my own name
• Once subdivided and built, I'm anticipating a 100-200k increase in valuation on top of the purchase price
• Use the equity I have in this first property (in my own name) to purchase another property within a trust.
• For example:
  • Purchase price on first property is $1m. Loan at 80% is 800k.
    
  • Valuation once completed is 1.2m, giving me 400k of equity in that property.
    
  • I can use that 400k towards a second 600k investment property (owned within a trust), leaving a much smaller 200k loan within the trust.
    
  • I can then potentially make a loss on the first property (because of the increase in loan), or break even, then the rental income from the 2nd property is mostly profit, which I can distribute however I want within the trust.
  • For the any further investment properties I purchase, I can do the same thing - remove all the equity from the first house I own in my name (which I'm assuming will continue to increase over time due to higher valuations), and use that to finance subsequent properties that I'll buy in the trust.

Is this a viable strategy? Is there any better options to achieve what I'm looking for?

 

You have some misunderstandings about loans and tax and you should seek specific legal advice.

It is possible to buy in your name first and trust later

 

The extra costs and limits of a first property in a trust may be of dubious benefit v costs. eg Neg gearing losses will be retained in the trust and not assist you personally.
Obtaining legal and tax advice would ensure you understand more about the issues