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Property Trust

Discussion in 'Accounting, Tax & Legal' started by artgul, 7th Dec, 2005.

  1. artgul

    artgul Well-Known Member

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    Hi,

    I hear about the "Property Trust" and was wondering if some one knows about it and how its structure or deed is different to the HDT?

    Thanks,

    artgul.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    If we're talking about the same thing here - a "property trust" is usually a managed investment that invests in real estate. It's a unit trust like a share fund.

    Totally different to a HDT.
     
  3. MrDarcy

    MrDarcy Well-Known Member

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    Or are you refering to the "property investors trust" as promoted (and trade marked) by http://knowledgecentre.com.au/ ?

    I've read the only way to find meaningfull details on this is go there and pay for their time :confused:

    Recently discussed on Somersoft
     
  4. artgul

    artgul Well-Known Member

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    Hi MrDarcy,

    That's what I meant. I bought and read their book but, besides the mention of it, there is not explanation of the structure of it.

    I've to admit that what they say sounds great even though it still kind of a black box...don't like that part :confused: . The other issue that makes me unconfortable :( is that the "Property Trust" hasn't being tested in court. According to their book, that's the ultimate form of testing... at least, that's what i understood.

    Regards,

    artgul
     
  5. NickM

    NickM Co-founder Staff Member

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    I have not seen or heard much about it.
    The main advantage seems to be the ability to get around land tax in NSW
    I would be interested to see if a Revenue Ruling has been obtained from OSR

    nickM
     
  6. OLI

    OLI Well-Known Member

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    Hi NickM, now that a little more is known about the Property Investors Trust and it's actually a unit trust/hybrid trust combination (with the units held by the hybrid trust), are you able to set up a similar structure for your clients who want to get around NSW land tax?

    Oli.
     
  7. NickM

    NickM Co-founder Staff Member

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    Hi Oli
    I actually discussed this with Chris Batten at great length late last week.

    It really comes down to what you tell the OSR. Unit trusts do not get assessed, it is the unit holder that gets the secondary assessment.

    If that unit holder is a special trust then - no threshold.

    you can play with the issue of the units to get around land tax but it "may" get you later.

    NickM