Buy Property in Trust / Company / Personal Name? Get Endless BORROWING POWER & Save TAX! 🏠

[@AusPropertyMasteryWithPK]

Corrections: Monica meant the NT, which has no land tax. The current threshold in Western Australia is $300,000, and any land owned in either a company or trust (regardless of the type of trust) will be assessed separately to land owned as an individual or held in any other structure.

[@herna-z9w]

thanks for the correction, PK. I was a bit confused when I heard it in the video. By the way, is NSW the only state in which discretionary trust is treated differently (worse, as no threshold can be applied) from unit/fixed trust in terms of land tax? The other states treat any types of trust the same, correct?

[@DanielFlack1]

Hey mate, can’t believe this interview and all the free advice provided in KZbin format. Really helpful for me, so many gems of knowledge. Disposing of the company and getting that CGT discount is amazing. That and so many gems of knowledge. Thanks you!

[@riley7528]

Geez, rough crowd in here. I took heaps out of this video on a topic that is quite intricate. Thanks for reaching out to great people PK. Enjoying this ‘extending borrowing capacity theme’ you’ve got going on at the present moment hahah.

[@shuttershotsbp]

This is one of the best episodes. So many Gold nuggets.

[@albertjoseph9684]

Brilliant questions PK. This was one the most important video I watched. Thanks Monica

[@jackscanlan9867]

Amazing video. Learning to ask the right questions is such a big step in setting up the right structure.

[@AusPropertyMasteryWithPK]

❤ JOIN THE COMMUNITY & GET FREE SUBURB TIPS + STRATEGIES 💡 Private Facebook Group With Over 50,000 Clients & Investors 👉 facebook.com/groups/passiveincomethroughproperty 💡 Top Ranked No "BS" Podcast On Spotify/ Apple Podcasts/ Google 👉 consultingbypk.com.au/podcast/

[@Marce47]

What a great free content! ❤thank you Pk!This is more than golden nuggets 😮

[@tarunfreestone6024]

19:19 Absoloute gold in a nutshell, build each investment property into a corporate business entity and when you want to sell you just sell the company that owns the property then you as beneficiaries *trust members * will exchange shares at market value and not attract CGT

[@ANDIYOUNGtv]

So good to know these intricacies! That’s why I’m having a meeting with my chartered accountant next week before finalizing the tax matters! Thanks for the great contents!

[@catalogofhappiness]

Absolutely loved it! ❤❤❤ Great value.. I learned most of this over a year which has been presented here with extremely important small gotchas. Fantastic video 👌

[@DanielFlack1]

Hey mate, can’t believe this interview and all the free advice provided in KZbin format. Really helpful for me. Disposing of the company and getting that CGT discount is amazing. That and so many gems of knowledge. Thanks you!

[@mudassarmor7395]

Kudos to Monica and PK for such informative sessions.

[@DaTrollerSkate]

Very informative video! Lots of gold nuggets in there! Also great Qs you asked, which I had on my mind as well :) Thanks PK, really enjoy these types of content

[@Westaus_propertymanager]

This is such an informative video, thank you both of you for sharing such valuable information! Great for investors!

[@DJS-c3m]

Such a helpful video! Thanks for delving into this topic at length!

[@haywirekwek]

This is truly amazing PK and Monica. Truly great!! ❤

[@rduong28]

This is incredible technical information summarised in 1 hr. It's essentially a consultation with a solicitor & real estate veteran.

[@AusPropertyMasteryWithPK]

Would costs thousands otherwise!

[@Qauntum_case]

Really great video with a lot of information around the benefits of a trust. Thanks!

[@MrMhupk]

Dear PK. Been watching your videos for the last two days and they are so informative! Can’t thank you enough. Truly enlightening! This video is so informative!

[@izzyy00xx]

Assuming the properties would need to be extremely positively geared to achieve such - given the higher interest rates to borrow in trusts, not all banks lend to trusts, land tax liability (based on state), the annual yearly accountancy costs and ATO compliance costs etc. Good luck finding these properties!

[@imranhussainfca]

That's not what she said. You will artificially boost up income using related parties which will pass the tier 2 vendors

[@gimmelife3717]

Thanks for summarising what to consider :)

[@ankitsethi84]

Amazing video and thanks for the wealth of knowledge PK !

[@MrGeddes85]

pk, great guest! monica you have a great way of explining a very technical subject. cheers for the amazing advice and u should think about creating your own content. id give that a follow

[@sydneyviolinstudios]

@McGeddes85 thanks for your support! I will definitely think about creating my own content down the track 🙏🏻

[@gimmelife3717]

I second this Monica :) so glad you are based in NSW/Sydney

[@teresazhang3766]

Thanks Pk and Monica, really appreciate of all the information from the video! Keep the good work!

[@reggiekilpatrick]

Gee what a great advices thank you so much i have learned so much from listening here. Thank you

[@nitinkonge4485]

Hi PK, Would like to know about the negative gearing benefits vs trust. Will we lose the negative gearing and tax saving benefits if we go for investment with trust approach? Also retro purchased property, what is the process to restructure with new trust? Do we need to sell the properties to buy under trust?

[@TenderTums]

Yes you lose negative gearing against your personal income. Losses in the trust can only be offset against future gains within the trust.

[@ecoarbor]

Amazing content. A wealth of information to kick start discussions with accounts and solicitors and brokers. Love it. Thank you so much for sharing your time and your knowledge.

[@ccchannel1299]

Excellent video! I did this with one of my properties i.e put under a trust. Unfortunately, I'm still stuck with 8 properties under my name. Maybe a video on ways to re-structure without costing an arm and leg?

[@AnaaasA7358]

Yes that would be amazing, there is a broker who claims its possible to restructure a property from Personal Name into a trust without having to pay CGT or stamp duty!!! Would love for PK to interview someone about this

[@Birch37]

Yeah. In theory it might be possible to create a trust outside of the property ownership and record the property in the trust as 'an interest' or lean. I think, Chan and Naylor Accountants claim this is possible to add protection only. I don't think this has been tested in the High Court.

[@AnaaasA7358]

@@Birch37 in theory you can transfer a property from personal name to a Trust without paying stamp duty and CGT?! Sounds like impossible thing to me tbh

[@Birch37]

​@@AnaaasA7358 that's not what I said. Read my comment....

[@irenef9422]

Yes! This! Would love a vid on how to take property out of personal name/s (my sis and I) and into a trust so that I can utilise borrowing capacity to the maximum without being penalised for my sister’s hecs debt.

[@linawang1220]

How do you have CGT discount by using a company to hold trust? Trust is not a separate legal entity, so profits from trust belongs to the company(beneficiary), then company doesn't have CGT discount - so it doesn't make sense to me by having company own the trust for CGT discount

[@imranhussainfca]

Fair point. If you listen she says it's for really long term holding and passing it to your kids not selling in between

[@melsbraids1857]

Thank you this was super helpful to me.

[@fish808fish]

is it just me or should there be a cap for how many properties someone or trust can own ? it seems like the rich dad poor dad virus has just provoked more greed rather than living a more stable life. Once someone has 3 properties leave the rest for others

[@AusPropertyMasteryWithPK]

Socialism?

[@WaveformV1.0]

@@AusPropertyMasteryWithPKsounds like greed.

[@AusPropertyMasteryWithPK]

@@WaveformV1.0 capitalism?

[@cfmc6201]

How about how many shares you can have ? Or how about only 1 car per family ? How about I can only work 5 days 37.5 hours . What if I want to work 80 hours should I stop to let others work more ?

[@imranhussainfca]

Its also called Risk management not socialism. No point in leverage if you need to sell in the downturn

[@yaritzasalazar5296]

Love it great info

[@ReActiv8R]

How "legal" is it for a lender to request the Director of the company which is the trustee of the trust go Guarantor for the loan? That would seem to defeat the purpose of the trust structure in general.

[@nq6417]

You are correct if you don’t understand the purpose of the structure is to hide borrowings.

[@crazyham]

Big Love Great Value ☀️😎☀️ Been watching for ages now 😉

[@NickTsk]

At what part of your property journey should you start thinking about a trust for property outside of Super? 3-4-5 properties?

[@bird2191]

Great informative contents

[@00030263]

But who do you trust to set this up for you? It's easy to google a solicitor or accountant in your area who apparently can do this, but how do you know they will do this correctly for you? and not cost you if they do it wrong.

[@nguyenphuongchang3925]

Is this just for Australia?😊

[@sallyjohnson5985]

We have willed our properties into testamentary trusts for our kids to provide intergenerational streams of income for them.

[@JimmyVincent-lg8sg]

Hi Guys, great video and thanks for providing a lot of valuable information. It was mentioned there’s no land tax in WA, but there is. Can you just clarify regarding that.

[@sydneyviolinstudios]

@JimmyVincent-lg8sg Yes, you are right. I got my states mixed up. I was supposed to refer to the Northern Territory. The current threshold in Western Australia is $300,000, and any land owned in either a company or trust (regardless of the type of trust) will be assessed separately to land owned as an individual or held in any other structure.

[@shergill4301]

Great info, PK....

[@gs-mv1ph]

Learnt a lot! Cheers PK and Monica! Sub’d

[@nq6417]

47:08 talk to your mortgage broker first, before a solicitor or accountant. I’ve bought a property in a trust with a corporate trustee to hide borrowings. I’ve spoken to 3 mortgage brokers since that purchase and they all laugh at the real world application of hiding/unlimited borrowings. It’s an expensive structure

[@leighbennett7223]

Yep, this is the problem and why advice on this topic is so problematic.

[@EastWood2004]

The trust works well in Vic as the threshold is 50k. Nsw’s threshold is 1 Mil so you are generating -17K outgoing (eroding 1.7% return per year) if you own a house In Sydney where most houses are valued ,ore than 1 Mil.

[@MONICA.ROUVELLAS]

Remember that land tax is based on the land value not the market value of the property.

[@EastWood2004]

@@MONICA.ROUVELLAS yes, The land value is 70%of property value if the house is a single story old house. In Vic there is no official value dictated by the govt. I once queried a property worth 820k. The RE agent told me the land value would be 800k. :0

[@EastWood2004]

One more thing is if I intend to invest in shares and commercial properties then the trust is a good option.

[@crazyham]

Loving This 🙏

[@imdadiman]

In WA investment property Tax in high & goes up with CPI each year.

[@chaitanyasamardhi8495]

Biggest disadvantage of properties in trusts is your can’t claim the negative gearing. So if I’m at 47% tax this is of no use to me right?

[@robi19able]

is there a breakdown additional costs in trusts and companies vs individual, interested in servicing costs and borrowing services costs.

[@amitjoshica]

Loved it

[@michaelmccullagh2241]

Wow this is good stuff. Now i need to draw some diagrams with arrows!

[@MONICA.ROUVELLAS]

@@michaelmccullagh2241 I’m planning to some videos in the coming months where I’ll draw some diagrams.

[@Pete-v8j]

Some valuable information

[@lamentate07]

Distributing money from trusts to others is becoming increasingly risky. So much in fact that many accountants advise against it and have been doing so for years. Putting properties in companies is a terrible idea unless you actually have a real business or want to hide your assets from bankruptcy court. The CGT is insane.

[@anthonyadam7343]

eventually when you close the company the beneficiary of the company will have to pay the balance of the CGT

[@chaitanyasamardhi8495]

I would really appreciate a real example with numbers. For her to say in trusts you can buy unlimited properties as long as you have a deposit. Like how? Take an example of a property say $600,000 with a rent of $600 per week, the property is still negatively geared over $10k annually. When the bank see repayments they look at repayment at sensitised/assessment rates. So comments can be supported by numbers to make more sense.

[@ZoeZhang-ji9nv]

Can't believe CPA is get judged on this. A couple of more group assignments does not make CA more knowledgeable. In fact, CPAs are more practical! 🤔 Also, FYI, there is land tax in WA.

[@AusPropertyMasteryWithPK]

Please see the correction in pinned comment

[@imranhussainfca]

She is broadly correct actually

[@Rational-555]

you should bring Bank employee...... I don't think bank give loan just by opening trust and10-20% money....

[@cravefour]

How to get endless borrowing power? The trust account with company is still counting on your personal income as primary servicing sources.????

[@sarahfrancess2981]

The reason is some lenders have a policy where any properties held by a trust- if the property is positively geared (ie. The rental income covers mortgage & expenses), the lender can disregard the debt associated with that property. So even though they do look at your personal income & expenses, a lot of debt can be disregarded hence restoring your borrowing power.

[@nq6417]

@@sarahfrancess2981 you put that so well Sarah 😎

[@JorgeGarcia-di9ot]

There is land tax in wa

[@AusPropertyMasteryWithPK]

Corrections: Monica meant the NT, which has no land tax. The current threshold in Western Australia is $300,000, and any land owned in either a company or trust (regardless of the type of trust) will be assessed separately to land owned as an individual or held in any other structure.

[@ipodboy43]

Good info

[@enlightme8612]

Hi PK and Monica, Really appreciate this. This topic is really answering alot of my question. Is Monica base in syd? Would like to see her for consultation, if she is. Many Thanks guys. Regards

[@AusPropertyMasteryWithPK]

Yes I think so, get in touch with her

[@Young_Gingers_day]

Thank you so much for sharing PK would you mind to tell again for her contact,thank you

[@AusPropertyMasteryWithPK]

Hey she mentioned her email at the end

[@MrGeddes85]

monica rouvellas is the spelling,,,, its also in the bio link thing next to pk's # just below the title

[@Gozna007]

@@MrGeddes85 thanks a lot for spelling the name…couldn’t have worked it out😅

[@anti.thetical]

Class Act !

[@leonie563]

$1,000 wow omg you had to spend something! Renters pay out $5,000 everytime you flip properties vacant possession.

[@stevebaker7248]

Yeah but I got a Corp trustee of discretionary family trust that also distributes to a corp beneficiary that owns property( that has a $1M cgt that would be triggered )but tier 1 bank johnny got confused about me taking another RE loan in its corp name. eventually I thought fck it and got extra loan in personal name!

[@sydneyviolinstudios]

That's why finding a broker who can do this is key. I'm sure PK knows some good ones that can help you out.

[@crazyham]

PK & Ravi Sharma should do a Collab 💯

[@MrGeddes85]

omg that would be great

[@Ikrammalek1]

Probs not Ravi sharma is a buyers agent

[@crazyham]

@@Ikrammalek1 Why Not, they both do good analysis of the property market. Not so far fetched lol Many Overlapping fields of the finance and property markets collab on YT.

[@roseyjojo]

So the bottom line is that we need to find a property which is positively geared, and thats the diffcult part

[@superwag634]

These financial manipulations all work until they don’t. You’re trying to plan a long term structure in an environment of endless tax and law changes. See what they did to super? They will do the same to “investment” properties one day. Diversify away from just property is what a prudent investor would do 🤷‍♂️

[@ellenmcaleese7004]

I was o.k for the 1st 10 mins but you lost me after that.....

[@crazyham]

Why?

[@DJS-c3m]

It’s not an engaging topic for most! If you didn’t get anything out of it, you might be a) not ready for the info OR b) past needing the info. Can’t people just be kind?

[@AusPropertyMasteryWithPK]

@@DJS-c3m 🤷🏻

[@PradyVK]

Hi PK , I heard her mentioning something about no land tax in WA ???

[@sydneyviolinstudios]

@PradyVK, just to clarify, I actually meant NT. I got my states mixed up. I was supposed to refer to the Northern Territory. The current threshold in Western Australia is $300,000, and any land owned in either a company or trust (regardless of the type of trust) will be assessed separately to land owned as an individual or held in any other structure.

[@PradyVK]

@@sydneyviolinstudios Thanks for clarifying that !

[@Rational-555]

what i understand..... Trust is good if you have at least 4-5 properties, without any loans. loan properties cannot be put under trust.....😂😂😂😂

[@zengfamily8390]

Set up a testamentary trust for estate planning

[@zengfamily8390]

A trust doesn’t have any land tax threshold in NSW. It makes sense to set up discretionary trust for tax purposes once you max out personal land tax threshold

[@andrewcheshire244]

SAD. Nothing legally wrong with owning 50 properties and living like a King off the backs of hard working people... however, it's exactly how to destroy a country by creating a bunch of slovenly people who don't have to contribute anything to the economy because they borrowed their way to insane wealth. And I for one want out of my trade and into a life of easy luxury and am going to try and become one of these lucky ones who learnt all the right life lessons. This country is fkd.

[@crazyham]

She is Smart & Very Beautiful 💥

[@bellanguyen63]

Hi Pk, could you post up Monica's contact details. regards

[@AusPropertyMasteryWithPK]

She mentioned at the end 👍🏼

[@12345xfire]

Lol, good luck selling the shares of a company with an encumbered property to anyone. Not a very practical tip.

[@AusPropertyMasteryWithPK]

We discussed the difficulties of this and it may not be viable. No need to laugh at someone trying to help, for free.

[@12345xfire]

​@@AusPropertyMasteryWithPKDidn't mean to come off as negative PK, all strategies are worth weighing. Definitely worthwhile info in the video.

[@Antler0]

May I ask why is it different to sell the shares with an encumbered property? Does banks not allow it?

[@sydneyviolinstudios]

@@Antler0 You need to have a buyer who would be willing to acquire an existing company. So you're basically limiting yourself to a small number of investors who'd be open to this idea.

[@twisterli9177]

​@lasol2474more complicated for the ordinary guy. You have to be a director. Pay asic fees. Tax returns.

[@simongaviri9004]

Hi PK and Monica thanks very much for your presentation which I have learn a lot from. Simon Gaviri . Property Investor. WA

[@zeniesagie3802]

Hi Pk, keen to get Monica's contact and seek her assistance in setting up a Trust.

[@AusPropertyMasteryWithPK]

She mentioned her email at the end

[@trogdortheburninator8149]

Ha if she thinks banks will “endlessly lend” solely on equity just by setting up a trust shes sorely mistaken

[@jaytee6960]

I don’t recall her ever saying that at all. My takeaway was start with your end goal and talk to your accountant and solicitor to come up with a strategic plan. It’s never a one-size-fits-all scenario. I gained lots of valuable info and insights for free. Thank you Monica and PK!

[@yoonisgale7431]

and at 4:50 she mentioned that as long as she have the deposit.. heaps of valuable insights for almost an hour here from a solicitor for free! big thanks❤ thank

[@dathush]

​@@jaytee6960the heading on the vid says it.

[@chaitanyasamardhi8495]

I would really appreciate a real example with numbers. For her to say in trusts you can buy unlimited properties as long as you have a deposit. Like how? Take an example of a property say $600,000 with a rent of $600 per week, the property is still negatively geared over $10k annually. When the bank see repayments they look at repayment at sensitised/assessment rates. So comments can be supported by numbers to make more sense.