I am aiming to develop a property port folio. My husband has his own company that has a hyphonated name such as ***** ** – It Development Pty Ltd and we were told by the acountant that we should set the property folio up under our exsisting company name but with an extention. Such as ***** ** – Investment Group Pty Ltd. and with myself as a director.
Is this a good way to do this? I’ve seen mention of trusts, how is this different?
AS it will be a different company, you can use whatever name you like. It may be better to use a completely different name as similar names may imply a relationship (people may dealing with the business may find out about the properties more easily).
Why is your accountant recommending a compnay strucuture? I would never use a company to hold an appreciating asset. Look into trusts as these are much better in my opinion.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
i agree, never use a company to buy property, you fail to utilise the 50% CGT deduction.. the way around it is to have a trust fund, with the company at arms length as director.
hope this helps
shaunLead, Follow or get out of the bloody way
Ok thanx guys. Where can I find out all I need to know about Trusts?
I have just received Trust Magic by Dale Gatherum-Goss (and read it in one night!). It was an eye opener.
You’ll need to get it directly from http://www.gatherumgoss.com
James
You can also get “Wealth Guardian” from this site which explains the advantages and disadvantages of the different ownership structures
https://www.propertyinvesting.com/resources/11.html
Highly recommended.
Shushar
“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
I don’t know if your accountant knows a lot about property investment, but there are some that have it as one of their specialty areas. It may be best to find one of these. They may be expensive, but it is important to get it right. The benefits wills soon outweigh the cost.
Regards
teabagted
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