Join our investing community

Family TRust

Discussion in 'Introductions' started by Jarosite, 11th Dec, 2007.

  1. Jarosite

    Jarosite New Member

    Joined:
    10th Dec, 2007
    Posts:
    1
    Location:
    Melbourne, Victoria
    Hi all. I am new to this site. I live in Melbourne and am a novice when it comes to investing etc. I have a Family Trust attached to my company and a Super Fund as well. What i would like to know is can i use my Family Trust to buy property. By this i mean, i have a property i want to invest in and invite other investors to contribute. I do not want to borrow for this property. How can i best utilise the Family Trust or should i taker another path?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    If you are looking to have other people invest with you then a discretionary trust (which is what I assume you mean by "family trust") is NOT a good structure ... I think you'd either want a unit trust or a company structure. There are pros and cons with each - but I'd tend to go towards a unit trust.
     
  3. Sparksy

    Sparksy New Member

    Joined:
    27th Dec, 2007
    Posts:
    2
    Location:
    Melbourne
    what would be the best way to go?

    I was doing some thinking about it and though:

    Partnership: You would need a rock solid agreement which would cost a grand or 2 from a lawer but you would be able to negatively gearing the property. On top of this i would think that you could use the first home buyers grant if the partner/s have not previously purchased a property.

    Company: depending on the type of company you have limited liability - how can this benefit the ownership of property?

    Trust i have no idea about, what are the pro's and con's of purchasing a property through a trust?


    Ryan
     
  4. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi Sparksy & Jarosite

    I agree with Sim. Some additional comments below.