hey all
i am looking to buy and renovate a property with a partner in the next year or so. i have no idea how to go about structuring the finances. would anyone be able to give any info on:
what loan would be best suited?
who do we see to get a contract written up so everything is clear when we sell?
is it the 6 months period where we get exempt from cgt?
are there any overheads we r unaware of with renovating and selling?pretty much any help to ensure that i go into this project with the most amount of knowledge so i can make good profit.
thanks to anyone who can give their advice on this. would help me alotHi
if you are going to sell you should focus on exit costs more than rate – some of the cheap rate loans have huge exit fees. I would suggest IO for any loan, and having an offset account would be good too.
You would need to look at structuring the ownership of the property – do you use a trust or individual names etc. You should talk about this with your lawyer or accountant and mortgage broker.
There is no period where you don't need to pay CGT for an investment. If you sell within 2 days tax would be still payable. But you do get 50% reduction if the asset is held more than 12 months (from date of contracts).
There may be some overheads you are unaware of……..
And you lawyer should be able to help with the agreement on buying together.
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
hey terry,
sorry to read your reply after so long. been overseas and been a while since ive been on this site.thanks for your info. I havent talked to a lawyer or mortgage broker yet, just wanted to gather my personal info before i get to the next stage.
I know i was vague in my initial post, but If i buy the property to renovate as my ppor, doesnt that exempt me from cgt? of course i will discuss with a lawyer about the joint venture agreement side of things, but as for the financing side of things, is it possible to get separate loans for the same house and pay the interest on them seperately?roy
Regretfully whilst the loans could be separate and represent 50% of the total amount borrowed (even with a couple of lenders have your individual names on the statements) you would both be jointly and severably liable for the entire debt.
Richard Taylor | Australia's leading private lender
You should contact to your lawyer. He can make your concept clear about the tax and other things. Judge very deeply before buying a property.
will probably be able to keep it CGT if you buy in your own name and have no other property being your main residence at the same time.
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
OK that promising seeing that we can have two separate loans combined into one. so together we will be liable for the whole amount of the loan. that clears up a few doubts i had.
Thank you very much for the information guys.
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