Trusts, Unlimited Borrowing Power, and Why You Should Avoid Them

Trust structures and borrowing capacity are often marketed as a shortcut to building wealth — but the risks are rarely explained properly. In this TPC Gold segment, Bryce and Ben respond to a listener question about why they consistently caution against using property trusts as a mainstream strategy to increase borrowing power. They unpack where trust structures can work, where they become dangerous, and why regulatory risk, disclosure issues and misaligned incentives matter far more than most people realise. This conversation is a reminder that complex strategies aren’t automatically smart strategies — especially when they’re promoted without proper licensing, transparency or long-term thinking. *Timestamps:* 00:00 – Listener question on trusts and borrowing capacity 01:59 – Why the idea sounds attractive at face value 02:45 – When ego, scale and incentives take over 03:34 – Where disclosure and risk start to break down 05:34 – Why governments eventually change the rules 06:46 – Why mainstream adoption ends badly 07:54 – “When the tide goes out…” 09:06 – Regulatory risk as the biggest threat 10:09 – Why this works for outliers, not most people P.S. This is just a snippet from our 567 | Trusts, SMSFs & “My Buyer’s Agent Said I Asked Too Many Questions!” — Is That Normal? For the full scoop, check it out here 👉 https://thepropertycouch.com.au/ep567-qa-trusts-smsf/ P.P.S. And feel free to send in your questions here 👉 https://thepropertycouch.com.au/topics/ We would love to answer them on the show! #ThePropertyCouch #TPCGold #PropertyTrusts #BorrowingCapacity #InvestorEducation #PropertyRisk #FinancialLiteracy