Frequently Asked Questions
General
Why invest in property through a trust?
Trusts can provide asset protection, tax flexibility, and estate planning benefits. They allow you to separate ownership and control, which can help protect your personal assets and provide more options for distributing income and capital gains. Moreover, when setting up with the right structure, it could unlock more borrowing power once your current property has turned "profitable".
What is a corporate trustee and why use one?
A corporate trustee is a company that acts as the legal owner of trust assets. Using a corporate trustee can provide extra asset protection, simplify succession planning, and make it easier to manage the trust if individual members change. Moreover, you could apply for a new loan if existing trust is trading profitably and meeting its liabilities to exclude the debt.
How much deposit do I need to buy a property in a trust?
Generally, lenders require a 20% deposit for properties purchased in a trust, though this can vary. Some lenders may allow less with lender’s mortgage insurance (LMI), but lending criteria are often stricter for trusts than for individuals.
Can I live in a property owned by my trust?
It’s possible, but there are tax and legal implications. Living in a trust-owned property may affect your ability to claim certain tax benefits and could trigger additional taxes. Always seek professional advice before making this decision.
What are the risks of investing through a trust?
Trusts add complexity and cost, and not all lenders or professionals are familiar with them. There can be tax traps if not set up or managed correctly. It’s important to get expert advice and ensure your trust is structured for your goals.
How do I get started with trust-based property investing?
Start by clarifying your goals, then seek advice from a property-savvy accountant or lawyer. Set up the right trust structure, get pre-approval from a lender, and use resources like our club to guide you through the process.
Using the Club
Is Bulletproof Investing Club affiliated with any other educational program i.e. bulletproofinvesting.com.au?
No, we are an independent community. We are not officially affiliated or endorsed by any organization.
Can I join if I’m new to property investing?
Absolutely! Our resources are designed for both beginners and experienced investors. We provide step-by-step guidance and a supportive community.
How do I access the calculator and resources?
Visit our Resources page or use the navigation menu to access the calculator and download templates. Some resources require you to fill out a form to receive the download link by email.
How do I contact support?
Use the Contact page to send us a message. We aim to respond to all inquiries within 2 business days.