Paul: Good day guys, its Paul Glossop here, from Pure Property investments again, we’re joined today by Peter Fawcett. Peter, thanks for joining us. Peter is a chartered accountant and he is also the principle of Agera Advisors. What I’d like to talk about today specifically and obviously always what we’d like to do is provide education on an ongoing basis to our clients. Specifically today, what we want to talk about is given you’re an accountant, you’re a chartered accountant, you have a lot of experience in the property field. What I’d like to know and some of the questions I get asked quite frequently by my clients is, what are some of the pitfalls and some of the benefits of buying property in both personal names and in trust structures? There’s obviously a multitude of different ways you can buy property, and there’s benefits and restrictions and potentially financial restrictions based on those different options and choices. I guess the main thing is, when you do buy a property, what you chose to do upfront, most of the time can’t be undone. If you do undo it, it’s usually very, very expensive to do so. The importance of getting this right upfront is invaluable, in my opinion. Time and time again, we make sure we have to have this discussion before we buy a property. Peter, if you wouldn’t mind sharing with our viewers a little bit more about those aspects. Peter: Thanks, Paul. When a customer comes to us we look at their risk profile. It’s often the risk profile will be their first property purchase. With the first property purchase, you typically do it in your own name, and they’re gonna give it against your own income, depending on your risk profile. Now, if a savvy investor came to us with quite a number of properties, we’d typically push them towards a trust structure. Trust structure gives you the benefits of discretioning home distributions and discretioning capital distributions. You can take advantage of distributing the family income, or you can distribute the capital in any way you see fit. The only drawback with the trust structure is that you don’t get the tax-free threshold for land tax. Typically, we assess the customer, we assess their needs and wants and demands, and then we push them towards a structure that suits them. Paul: There’s some good points there, I think some of the things that we take on, quite regularly within Pure Property Investments, we have clients come in talk about wanting to either buy their first investment property, or they’ve already got, like you said, potentially three, four, or five properties, is the fact that each position that someone’s in dictates a different outcome. Ultimately, what that means for us, is we try to make sure that we understand, is this going to be one of many? What’s your deposit, what’s the property position going to be? Is it going to be negatively or positively geared? That also dictates things such as, like you said, land tax thresholds and every state has its own land tax threshold. Amounts in a personal name, if you start buy two, three, or four properties in your personal name, you’re going to hit that land tax threshold relatively quick. Obviously with the trust structure, depending on the states, you’ll hit it immediately as well, so there’s obviously going to be some pitfalls there. As you can hear and you’re probably grasping right now, it’s a bit of a minefield. I think what’s vital is the right advice to make sure you’re buying the right property, in the right structure, at the right time, for the right reasons. From a personal perspective, having multiple properties bought in different situations, and in different structures, and for different reasons, it’s a very important component I learned early in the piece. Because what it means for me now is that not only am I maximizing my cash flow, because they’ve been bought in the right structure, but when it does come time to sell, I’m going to be minimizing my capital gains tax because they’ve been bought in different structures, probably for different reasons at times as well. There’s absolutely key components there that I think we all have to make sure we adhere to. Having conversations with your property savvy accountants, such as Peter, really help that process, and we work with Peter quite regularly with clients looking to do exactly that. Again, Peter’s details are at the bottom of the screen, so are ours. I hope you enjoyed this. I thought it was quite educational and informative. We’ll have more to come but for the time being, stay safe and we’ll speak to you soon.