All Topics / Finance / Should I purchase an IP through a Company

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  • Profile photo of demkeldemkel
    Participant
    @demkel
    Join Date: 2006
    Post Count: 49
    January 2, 2007 - 9:44 am

    Happy New Year All

    Could you please advise if there are any disadvantages in buying an investment property in the name of a “Pty Ltd Company” of which I would be the principle shareholder, as opposed to purchasing the property in my own name?

    I’ve been reading Steve McKnight’s new book which suggests you should have an appropriate investment structure in place prior to making a purchase.

    I am single and would like to protect my investment from any future gold diggers (I’ve been caught before).

    Thank you in advance for any feedback.

    Regards

    Demkel

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 2, 2007 - 2:04 pm

    Hi Demkel

    You might like to do a search on the topic as it has been raised many times before by other forumites.

    In essence i guess there is no right answer as each individuals circumstances are different.. Most serious long term investors look to set up their purchasing structure as a Pty Ltd Company which is a Trustee to the Family Trust which combines Asset protection as well as income distribution benefits.

    In saying this many clients may decide to purchase solely in the Pty Ltd name if they wish to utilise retained earnings and distribute income as and when they deem fit.

    Certain downsides would include CGT considerations if you intend to buy and sell property and are not classified as a developer.

    All in all as i mentioned there is no right answer and details of your personal circumstances would need to be known prior to making a recommendation.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 2, 2007 - 2:23 pm

    Companies do not get the 50% CGT reduction after 12 months of ownership.

    Look into trusts

    Terryw
    Discover Home Loans
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of demkeldemkel
    Participant
    @demkel
    Join Date: 2006
    Post Count: 49
    January 3, 2007 - 3:56 am

    Thak you Gentlemen

    Regards

    Demkel

Viewing 4 posts - 1 through 4 (of 4 total)

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