Property Investment Articles

Should you put an investment property inside a trust?

So many finance professionals are quick to advocate the use of structures when it comes to property investing. In reality, the use of structures is a complex idea and there are a number of pros and cons to using them. This short video looks at one key consideration when considering if using a trust structure is right for you. Make sure you get specific advice from your accountant before committing to any trust or other structures to be sure if its right for you.

So there is so much debate amongst professional via accountants, financial planners, and legal profession around the idea of using a trust to hold properties as you invest.

Now having done it lots of different ways I’ve used multiple companies trust very complex structures ultimately what I realized is that there are pros and cons to doing it both ways now obviously you need to go and get some detailed advice and support in this area but the key difference between holding and asset in trust versus holding it outside of a trust is that the trust is seen as an entity which can yes distribute income but it cannot distribute losses.

So the thing to bear in mind is if you’re going to put an asset inside of the trust for the key purpose of protecting that asset from whatever that can be a useful tool but the downside is that if you’ve got interested on a loan that’s against an investment property or depreciation benefits then those are I guess losses or deductions are going to be trapped in the trust and can be only used to office income.

I think once you understand that then it becomes much easier to make decisions around whether or not having a trust actually makes sense for you. So use that as a starting point to discuss with your accountant or your advisor or your professional to make sure that you don’t just rush down the path of setting up a trust structure for the sake of it and that you’re actually doing it with some thought as to whether or not that’s going to be a medium to long-term solution for you.

Hope you found that useful, Salena Kulkarni, Phoenix Wealth Group.

P.S. – Whenever you’re ready, here are 4 ways I can help you grow your wealth.

1. Fast Track - If you are ready to accelerate your investing results and get help with a personalised plan, then find a time in my calendar and let's get you started. Book Now.

2. Nearly Ready - Jump onto our next webinar and go deeper into some new frameworks that open up the world of alternative property investing and understand how to amplify your investing results. Register Here.

3. Not quite ready - Jump into our private Facebook group and become part of our community of investors who want information and insights into how to fast-track their property investing. Join Us.

4. Want more info - Grab part of my amazon best-selling book 'The Freedom Warrior'. It's the roadmap to getting accelerated results with your investing in the shortest possible time. Grab A Copy.

Related Posts

Ferocious about Wealth?

The biggest challenge that I see with business owners is apathy. They don’t care enough, and they are not fierce enough. One of the things in my relationship with money is interesting. Because in some ways I’m not particularly attached, I see it as a fantastic tool to...

read more

What do you need to do to find killer deals?

And this is what I’m saying, that this stuff, It’s taking me a lifetime to figure this one out, there’s no one teaching it. No one in Australia I know that got across this stuff, it’s about the network that you build and have an interest in it. Time, energy,...

read more

Why business owners are frustrated with their investments?

So here’s the challenge right now in Australia. The market feels wobbly assets are standing still and the runway, feels like it’s getting shorter. And what we are all worried about is that we are going to fall short on our expectations. None of us wants to get to a...

read more

The Capital V Cashflow Dilemma

People said to me, are you all about US property, and then I said no, I have huge portfolio here that I love but right now what you want to be able to learn if you want to step up to be a more sophisticated investor how to zig and zag. If everyone else right now is...

read more

As Trusted By


Call Us

(+61) 2 6100 3688

Email Us


7 MacPherson St O'Connor ACT 2602 Australia

PO Box 6049 O'Connor ACT 2602

Business Hours

Monday - Friday 9:00 AM - 5:00 PM


  • This field is for validation purposes and should be left unchanged.