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Yep - employment type doesn't matter as long as you're eligible and have sufficient income

100% LVR: no. 90% is the max, as far as I'm aware. They often borrow 100% of the property price though. 80% against that property from the bank (80% LVR) and an unsecured loan from the individual (yourself) or another Trust that you control. The individual or other Trust would be borrowing that 20% from the bank as a secured loan against existing equity.

Thanks for the quick reply. Understood. 🙏

Hi Alisa. As the Corporate Trustee is technically the owner of the property and a borrower in it's own right (IIOR) and as Trustee for the Trust, you would need a new Corporate Trustee for each Trust.

@@bluefoxfinance thanks for such a quick reply. Why can’t the corporate trustee who is already a trustee for trust 1 not be the trustee for trust 2 and trust 3? Is there a borrowing disadvantage for the same corporate trustee? Also when you pull equity out of trust 1, can you use that to buy a new property in trust 2 or 3? or the new property will have to be used by the same corporate trustee to be purchased within trust 1 again?

@@alisaparveen628 I assume they can be the Trustee for 3 Trusts, I just don't see a benefit to doing so. I can't see a benefit of having 1 Trustee and 3 Trusts, you may as well just have 1 Trustee and 1 Trust. I am, however, unsure if the Land Tax is calculated per Trustee or Trust. This is probably a conversation for your Accountant. Generally you may do 3 Trustees and 3 Trusts instead so you can separate the properties depending on what you want to expose to the bank in your application. Yes, you can pull equity out of Trust 1 to use as a deposit for Trust 2. The common way would be for Trust 1 to borrow $100k from the Bank, then lend $100k to Trust 2.

@@bluefoxfinance thanks so much!!

Hey mate. Head to about 35:20 and that should explain a bit better. Generally you want a Trust and a Company (Corporate Trustee). The Company holds the property as Trustee for the Trust.

Would you like to buy one? I haven't made it yet (and might never), but you can pre-buy for $20,000. Guarantees you to get rich quick

@@bluefoxfinance Make it $30k and I'm in!

Hi Peter. Generally no need to refinance them. There is a lender who will ignore the debt in a Trust even if they themselves are the mortgagee. Hope that helps.

Thanks Thomas. Very much would like to make more...honestly just swamped with work now so unsure when I'll get to it. The only resources I have are on the associated webpage (in the description) but that's mostly just a write up of the video.

Hi! Few things to unpack there: "Trading profitably" is a little subjective and up to your Accountant. The reason interest-only may be beneficial is because banks usually need a letter usually needs to confirm the Trust is "Trading profitably and able to meet it's commitments", and generally, an interest-only payment is a lower commitment than a P&I commitment The Accountant letter may be relative to either. I've worked with a large number of Accountant's and a number have a different answer. I understand that calling "X Family Trust" doesn't make it a Family Trust, that was merely so a term I used so that viewers could more easily understand what I was talking about. Thanks.

​@@bluefoxfinance so if a loan switched over to p&I which was now causing a cash flow deficit, your accountant could continue to provide letters saying X trust is trading profitability? And banks would accept this? (Despite the fact that the trust is not actually meeting it's obligations due to the cash flow deficit?)

Thanks a bunch. Hoping to put a lot more together on this topic for those that are interested in the intricacies - please keep an eye out.

No problems! I have a lot more to put out on this subject (and related), but just a bit busy with client work at the moment but hoping to get it out in the near future. Id like to include some real life strategies implemented based on income/capital etc.

I'll be looking forward to it. I've watched a few of these videos but found your step by step structured explanations with real life figures more informative. Each step was concise and straight to the point answering questions I wouldn't have thought to ask. Many thanks and looking forward to more videos if and when you can.

@@patricko2848 Thanks. I need to go through a few more fundamentals before I can get there I think. Specifically around debt recycling and yield vs growth (and how they affect future mortgage applications), then I'll try and use a few real scenarios. Get some interesting ones but the strategy is never quite the same for each client.