Hi everyone,
I’m not keen on the partnership structure for business. However, there are obvious benefits to investing in property with a partner.I have recently been discussing with another property investor the possibility of us partnering up for specific property investments. I know that a trust would be the best way to buy and hold the property, but I am wondering what sort of structure would be best for a successful partnership with maximum flexibility as we are thinking long term.
I was thinking a company structure with both of us as directors and that company being the trustee for the trust.
Any comments?
Thanks
MarkyMark
A trust is not necessarily the best option – the most beneficial entity depends on factors associated with the formation of the joint venture and its specific purpose.
You and your prospective partner should meet with a qualified laywer [and accountant] to discuss. I for one do not recommend taking advise from a public forum when it comes to joint ventures – they are never one in the same.
– Michael
Hi Mark
You should consider two things:
1) How to minimise risk (having two directors/trustees may not be a good idea)
and
2) How easy it would be to get a ‘divorce’ – if one of you wants out.Maybe taking turns buying in one name/trust/company, with some sort of agreement in place behind the scenes, will get you further.
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
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