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What to do?

Discussion in 'Real Estate' started by JAGuiD, 7th Oct, 2010.

  1. JAGuiD

    JAGuiD New Member

    Joined:
    6th Oct, 2010
    Posts:
    2
    Location:
    Hobart, Tasmania
    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?
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    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?
     
  3. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    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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  4. JAGuiD

    JAGuiD New Member

    Joined:
    6th Oct, 2010
    Posts:
    2
    Location:
    Hobart, Tasmania
    Thanks guys for your valuable inout :)