Hi,
I think the time is right to be buying another IP. some detailsMarried (me 43 professional, wife 37 self employed (selling business though) 2 kids (5 tomorrow and 3 next month)
2 properties (1 investment) (1 in my name (residence), 1 in wife's name (IP))
$450,000 equity (thanks Richard for the report)
Wife self employed (business loan) – Selling the business
Me employed (7.5years same company)
Managed Fund 30K (my name)I will look at buying when my wife sells her business. When the business is sold our company will have a loss so I would like to use this loss on my "investment" earnings.
I was thinking of setting up a family trust (3 years ago) and moving the Managed fund into the trust, but the CGT was too high, now with the GFC there will basically be no CG so it seems a good time to do the move. My problem is I don't know if I can get the income from the managed fund (and next IP) into the company to use the loss. I don't think buying in the company name is the best option (no cgt discount etc.. and I will possibly sell the IP). I would also want to buy the IP in the trust name, using the equity in the 2 properties to secure the loan (105 %) I would look at IO loan and would love CF+ and a real-estate hotspot
.thanks
MattHaving equity in your current property, and/or net sale proceeds from the business will allow you to borrow to purchase an IP with minimal or no contribution. Bear in mind that in recent times the banks have tightened up on lending to a company, even though the director/s provide a personal guarantee/s. This may restrict you to borrowing the purchase price plus stamp duty and legal costs (all depends how much equity there is in current property/s I am a finance broker that specializes, in development, commercial and residential finance and re structuring/investing.Having direct contacts with developers I have been able to find clients properties that they may have perhaps not known or heard about, and also by passing the agent and going direct at a more cost effective price to the consumer (you) If you wish to discuss further please don’t hesitate to contact me on the below contact details. Darko JakovljevicDirector Development Finance Mezzanine Funding Commercial Finance Home/Investment Loans Insurance Mob: 0423 094 500Fax: (03) 9867 – 3175Email: [email protected]Address: Suite 615, 434 St Kilda Rd, Melbourne 3004Web: http://www.wealthcorpfs.com
Hi Matt
Sorry firstly let me just adjust my eyesight after having read the above post. (Caps lock release button is the one on the left next to the letter A).
I dont want to appear flipant but you have asked about a dozen questions in your post and to answer them in a 1 line post would not do the question justice.
Your summary of purchasing in a Company name is correct and switching any existing asset class to Trust ownership will trigger both CGT as well as Stamp Duty depending on what it is so not worth considering.
There are some options about doing a project in the Pty Ltd name however i am not sure I would be confortable about using the same vehicle for your investing as you have used for your business.
Really should be checking with your Accountant about such an action.
Richard Taylor | Australia's leading private lender
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