want to buy 1st property need advice on structure

I would agree with the last post in regards to mortgage brokers.

They really know the options, but would ask “what makes a good mortgage broker”?

For us, the service we received was excellent during the set up and purchase, the goodies hamper after a nice touch, but then not so much!

There were questions which only our bank seemed to be able to answer and how quickly do people expect to hear back from questions to a broker?
How long does the aftersales help last?

Is it bad to suggest that usually your current bank can help you (and is sometimes your best option)? and why would you choose a mortgage broker over your current bank who you can ask directly when questions arise.

I understand how busy banks can be and how limiting one bank can be in relation to larger numbers of property investment.

How good are brokers in early stages of investment?
Certainly they are great initially to give options and pose questions but……. ?

Cata, even though you have a vested interest in the subject of the topic, I am happy to debate my point and stick by my original post.

I’m not saying that one should not consider it, but it seems to me that Mukta is in some dilemma about which way to go. I am reasonably certain that alot of us out there in the big wide world of property investment retain ownership under our own names as it is the quickest and most cost effective. I highly doubt that for someone with a couple of properties would need to deliberate about what structure they need to go with. Its the same when someone starts a small business. In most cases it is undertaken as a sole-trader situation. Once the business grows (and is starting to make money etc.) then incorporating is probably the next step.

I just felt that delaying a decision to buy a property (particular when Mukta is `busting’ to do it) because she couldn’t see a professional about structure till October is nonsense!

Hi Paula
I appreciate that this will be the start of your empire, but even so, my advice would be to go ahead and buy this property in your own name. If the opportunity is there now, take it.

Paula

I basically agree with CATA but don’t think that some of your basic questions have been answered. Firstly, if this is residential property there is no GST to claim back, regardless of which structure you use.

Secondly, I can’t believe you have to wait until October for an appointment. Find another adviser!! I can give you the name of a couple of very good ones.

Thirdly, I support CATA’s advice about buying in structures esp. if you are planning a decent real estate portfolio. Not only that but in our litigious society today a structure will protect your assets.

Fourthly, please make sure you see a good advisor, one who specialises in structures and invests in property themselves. Most accountants say they know and set up trusts with co. trustees only to find that they trust they used doesn’t give any consideration to land tax (which from my experience is usually forgotten about in most transactions.) You’ll also need to know your exit strategy BEFORE you buy because it will hve an impact on what structure you use. By exit strategy I mean will you hold or sell – and when.

Hope this helps. Good luck

Megan

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