hi all. Nice to know my buyers agent topic got a lot of discussion.
My next questions is:
Is it better to set up a company for buying investent property before buying the 1st one? If so how is a company set up?
Also, is it better to use FHOG to by own place first, then move out after 1 year then set up comapany. Or forget FHOG alltogether?
Dr B
1) Well, it depends !
Our particular circmstances dictated it was best to use a company as trustee of a discressionary trust.
BUT (a big but here); structuring is a complex matter as there really truly are many many possibilities depending on your particular circumstances. Probably the best contact here is the accountant Paul Harper from Jeena Partners in Melb who spoke so well at both of the property investing masters events.
I understand that he and Steve McK are producing a new product called wealth guardian (?) that will go to great lengths to explain the pros and cons of the more common options.
Mmmmm, best suggestion in the meantime is to seek out Paul, or someone like him, and discuss your personal situation.
2) From my reading of the FHOG legislation (for pretty much every state & territory) it does not specifically say that you have to stay in the house for 1 year after you have purchased it and received your FHOG.
However, our solicitor has reminded us recently that if many people do this, that the folks in treasury will likely make it a policy matter to challenge people who do leave early.
I am not aware of this happening as yet, so you may be able to purchase, move in for a while and collect the FHOG, then after some reasonable time move out again and rent the property. Best advice here is to seek advice from a solicitor in your state who KNOWS what they are talking about. Our solicitor actually took the time to establish contacts in the relevant bodies and find out what the feeling was on a policy level.
Better to know ion advance than to sail along happily in ignorance only to be chopped off at the knees later <grin>
cheers
Mr B
Hi MrB
You need to work out what your aim is :ie do you want to make a business out of property’or are you wanting to get only a few?
Do you want to employ people or not?
How much do you intend to make?
Do you want sucession?These and more questions you need to ask yourself first . It will help you then decide what struture to use.Make sure that YOU understand what any structure means , not just go along with what someone tells you to do
Cheers
Rob“A bank is a place where where they lend you an umbrella in fair weather and ask for it back when it begins to rain
Ok,
I’m no lawyer… but my understanding (at least in Vic. anyway) was that you could by a property ‘and or nominee’ with the intention of setting up a company and there was no double stamp duty. This avoids the need to incur a cost before beginning.
However I know this flexibility is not available in Qld… the structure must be set up first. Other States? You knows? It would pay to get some legal advice before going to far down the track.
Regards,
Steve McKnight
P.S. Wealth Guardian due to be released early March
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