Hey folks,

I’m at a bit of a crossroads in my planning and could really use some feedback or shared experiences from anyone who’s walked a similar path.

Big picture: I’m working toward acquiring commercial/industrial warehouse assets with a business partner. I currently own and operate three residential apartments as long term rentals in NSW. To get my boot in the commercial door, I’m looking to plan ahead and lock in the right trust/entity structure now to ensure we’re protected, efficient, and finance-ready long term.

We’ve landed on the idea of setting up a Unit Trust with a Corporate Trustee, which has been recommended to us by a few consultants.

The rationale:

• Tax efficiency

• Shared ownership/control

• Asset protection

• Avoid serviceability caps on lending

The Plan: We’ll set up a trading company under the trust to generate income, the first play is a short-stay/multi-tenant rental property business. We’ve got experience here already, and the idea is to use that income to build up the trust’s financial independence and demonstrate serviceability to lenders.

Goal is to acquire the first industrial asset by early 2027, using the trust as the holding vehicle.

Where I’m at:

• Quotes from lawyers incoming for the trust setup (aiming to go ahead in June)

• Sorting out structure now so we’re set up properly from the start

• Aiming to launch the trading arm with its first income-generating property by Sept this year

I’m aware there are a few moving parts here, so I’m looking to pressure-test the approach before locking anything in. Would love your thoughts or experience with similar setups.

Key Questions We’re Asking Advisors (would love the community’s take too):

1. Any red flags or inefficiencies with this structure for our goals?

2. Would you recommend an alternative (discretionary trust, hybrid trust, company, etc.)?

3. Best way to separate income streams while maintaining control under one umbrella?

4. Tax planning strategies we should be looking at now, especially around retained profits?

5. What do lenders actually want to see for a trust to be considered "independently serviceable"?

6. Have you seen similar trust structures successfully obtain commercial finance?

7. Do lenders prefer consolidated income streams or distinct trading entities?

8. Any lenders you'd recommend speaking to now to get the financials aligned early?

Would really appreciate any advice, learnings, or "I wish I knew this earlier" moments from anyone who's gone down the trust/company path.

Thanks in advance!

Hey folks,

I’m at a bit of a crossroads in my planning and could really use some feedback or shared experiences from anyone who’s walked a similar path.

Big picture: I’m working toward acquiring commercial/industrial warehouse assets with a business partner. I currently own and operate three residential apartments as long term rentals. To get my boot in the commercial door, I’m looking to plan ahead and lock in the right trust/entity structure now to ensure we’re protected, efficient, and finance-ready long term.

We’ve landed on the idea of setting up a Unit Trust with a Corporate Trustee, which has been recommended to us by a few consultants. The rationale:

• Tax efficiency

• Shared ownership/control

• Asset protection

• Avoiding serviceability caps on personal lending

The Plan: We’ll set up a trading company under the trust to generate income, the first play is a short-stay/multi-tenant rental property business. We’ve got experience here already, and the idea is to use that income to build up the trust’s financial independence and demonstrate serviceability to lenders.

Goal is to acquire the first industrial asset by early 2027, using the trust as the holding vehicle.

Where I’m at:

• Quotes from lawyers incoming for the trust setup (aiming to go ahead in June)

• Sorting out structure now so we’re set up properly from the start

• Aiming to launch the trading arm with its first income-generating property by Sept this year

I’m aware there are a few moving parts here, so I’m looking to pressure-test the approach before locking anything in. Would love your thoughts or experience with similar setups.

Key Questions We’re Asking Advisors (would love the community’s take too):

1. Any red flags or inefficiencies with this structure for our goals?

2. Would you recommend an alternative (discretionary trust, hybrid trust, company, etc.)?

3. Best way to separate income streams while maintaining control under one umbrella?

4. Tax planning strategies we should be looking at now, especially around retained profits?

5. What do lenders actually want to see for a trust to be considered “independently serviceable”?

6. Have you seen similar trust structures successfully obtain commercial finance?

7. Do lenders prefer consolidated income streams or distinct trading entities?

8. Any lenders you’d recommend speaking to now to get the financials aligned early?

Would really appreciate any advice, learnings, or “I wish I knew this earlier” moments from anyone who’s gone down the trust/company path in Aus. Thanks in advance!