That info re Trusts is all very well.

But the problem is, it’s almost impossible for an elderly Director to get investment finance for a Trust that has both assets and income, whilst still making sure that the Tax Man doesn’t get more than his share.

Any suggestions? I have tried everywhere. It’s frustrating to see so many opportunities, having spent 17 years rebuilding to this point (with a Trust for our disabled son) after losing everything due to the failure of our 28-year-old family business. (Like idiots, we spent all that time financing our Aviation business’ growth by using what should have been profits).

Also like idiots, we bought and sold 8 properties at various times to get over the “growth-humps” involved in going from $9-17 in the bank and one hired single-engine aircraft to operating 22 single and multi-engine aircraft (12 of them our own) and turning over just under $200,000 per week – all still with a bank overdraft of only $35,000!! Our “accountant” – as we are now only too aware – was good at mathematics, and that’s about all. As professonal pilots, good at our own job, we didn’t know not to leave the “finance stuff” to him.

We firmly believed throughout that the banks would eventually support us, but we were in the “wrong business” for that. They didn’t, and we ended up on a monstrous treadmill that couldn’t stay liquid without a “useful” overdraft.

I mention this only so you can see that we have been through the mill of a long-surviving business in a tough and competitive arena, lost everything at an advanced age, and started again from scratch to secure some sort of future for our son. We want to start investing again now, and set him up in a more intelligent way – but find yet again that the banks won;t lend for same – even though our son’s Trust now owns a house in Gladstone worth $500,000, with a mortgage of only $160,000, and rented (upstairs only) for $650 per week by excellent tenants who have signed an agreement to pay $800 per week once we finish renovating the downstairs so they can move in there as well.

We estimate that it would cost only $25-$30,000 to finish the work, and the mortgage bank (Wide Bay) won’t lend us even that – quoting the government’s new “responsible lending” laws. They are also still charging us 6% interest, and say they COULD come down to 5.9% ONLY if we fixed the rate – obviously expecting a windfall in break fees if we did manage to refinance.

I have written twice to Rolf and once to Michael Yardney, and tried brokers and banks galore. Always the same polite answer, but no positive results.

I have never been one to sit back and wait for luck to sort things out, but I am running out of time and options. Even beggars in Calcutta have the opportunity to borrow to escape their situation. Ditto in China. What is wrong with this country?? Pretty soon, if they keep starving the “engine-rooms” of funds, the “smart ones” won;t have any small businesses to “feed off,” and the whole caboodle will stall.

Do you know of anywhere trustworthy where our Trust could borrow to invest while there is still time?

Regards,
Carmel Piccolo