Hi guys, Im new to this forum, but have enjoyed reading some very insightful postings. I was hopeing I could get some of those insightful ideas regarding my current situation. My situation is this: My father and I want to start a property investing trust which he wants me to manage. His PPOR is fully paid of and is valued at $500K which we plan to use to draw deposits for purchasing IP's. My question is wether we should use it to buy a higher valued IP, or maybe several mid line valued IP's what are peoples thoughts?
My immediate thought would be that he needs to get financial advice. Hard to know what's best without knowing your financial position and personal circumstances but personaly as a father I wouldn't do it. I'd rather give my kids a deposit to start on their own. How old is your father? Have you considered creating a family super fund and investing in property using your super?
Trusts can be complex and, as Bill has said, I'd be seeking professional advice for your personal situation from a savvy accountant first before setting any structure up here. SMSF's can be used to now invest in property, and this presents many tax advantages. Mike Feltscheer from Navstar has written an excellent paper on this- happy reading!
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