The holidays are often a time that people reflect on ways that they may be able to give their family members a little extra help.
With the price of Australian real estate continuing to climb, especially in capital cities, a lot of people are considering the challenges that will face their children when they want to enter the property market.
It is not uncommon for parents to purchase investment properties with the intention of one day passing them onto their children. If this is something you are considering, here are a few things to think about:
You should look at schools, employment opportunities, transport infrastructure and, most importantly, planned future developments. Remember, many of today’s hot-spot suburbs were not as popular fifteen
years ago, and you’re in this for the long game.
If your rental income is below what you expected you might be forced to sell the property before you intended, losing out on long terms gains. Make sure that the type of property you buy fits the demographic
profile of the area and make sure that your property manager is first class.
If you are planning on passing a property onto your children one day, ownership through a family trust is a potential option. The advantage here is that when the property is positively geared or disposed
of with a capital gain, the benefits can be distributed to the family member with the most favourable tax circumstances.
However, the disadvantage here is that if the property is negatively geared the losses generally cannot be distributed to members, and can only be used to offset future earning within the trust.
Susan Flux, Brisbane
Since that time I known Tony and his team at Lee and Lee, they have provided me with outstanding advice and services regarding my personal, family and especially my SMSF borrowing setup for wealth creation and tax reduction strategies that have since led to financial independence.
I now very clear and feel confident on my future financial goals and taxation strategies and know they can be achieved with Tony's expert and professional help.
Shukri Barbara, Property Tax Specialists Sydney
Tony has impressed me with his technical knowledge and execution. He works with honesty and integrity and is generous in his dealings.
John Mu, Internet Marketing Strategist Gold Coast
Tony has the strategies which are helping me legally minimise tax. He has helped me in my personal development and wealth creation to build a multimillion dollar property portfolio.
If you want a hands-on accountant who knows his stuff...Tony Lee is the man!