Advantages of Property Trust in Investment Property

Investment property is any property bought with an intention of getting a return by generating profit through rental income and/or capital gains. Investment Property is always considered to be a safe and profitable. What price you pay to buy a property today can multiply in years to give you great returns. Unlike money, the value of property usually continues to rise despite any economic or political situation. Investing in property has become increasingly popular over the last fifty years and has become a common investment vehicle. Although the property market has plenty of opportunities for making big gains, buying and owning property is a lot more complicated than investing in stocks and bonds. When starting to invest in property it’s important to be clear on your property investment strategy. Are you going for high rental returns for the short term or are you going for long term Capital Growth? If you’re thinking about investing in property for the first time, it’s important to seek professional advice. Investing in property has several benefits, including the potential to: • Generate capital growth – increase in the value of your property over time • Generate rental income and yield – annual rental income less any costs divided by the purchase price of the property • Gain potential tax advantages associated with negative gearing – with negative gearing you can deduct the costs of owning your investment property from your overall income, reducing your tax bill. A Property Trust is a private, nonprofit organization that, as all or part of its mission, actively works to conserve property by undertaking or assisting in property or conservation easement acquisition, or by its stewardship of such property. A property trust is a legal arrangement where one or more 'trustees' are made legally responsible for holding property assets. Property trusts are helpful in buying properties for investors. A properly drafted and managed property trust can confer advantages under any or all of the following: Property protection: Property Trusts can be used very effectively to protect your property assets. Tax planning: Generally speaking, property trusts can be extremely effective for tax planning purposes and a correctly structured and administered property trust will produce substantial savings in income tax, capital gains tax and inheritance tax/estate. Confidentiality: Property assets in a trust are completely confidential, it's a private matter. Gaining flexibility: The best laid plans can, in a changing world, rapidly become obsolete. A discretionary trust can, however, be structured to provide for a system of management of property that is capable of rapid change as circumstances demand. Keep purchase price secret: By using a property trust you can keep your purchase price of the property secret. Keep sale price secret: By using a property trust you can keep your sale price of the property secret. Keep change of ownership private. When you sell a property in a property trust, you can sell the beneficial interest of the trust, rather than conveying by deed. This way no one knows the property has been sold.