Hi guys,
Would love to get some opinions on the best scenario in our current situation.
– Got a property ready to buy, the front half (which has the house) will be sub divided and sold. The back half will be divided in two and have a unit built on each property, and then sold.
Initially the whole property will be rented while the plans and permits are actioned, the house then sold and units built. We have 50K to use and the folks 200K
I have read about trusts, partnerships and heaps of other methods. Could it just be as simple as saying…. we buy it or the folks buy it 100% and the other side chips the money in and split the profits at the end?
I know this might sound like a 'fairy tale' situation, but we are all very close and something like this can be sorted in a very rational way if required. (my folks have 1/2 a holiday property with other family members and never been an issue)
Thanks for listning!!
Mick
You could do it that way But you need to consider splitting the tax and finance as well.
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
Thanks Terry,
At this stage we could do the finance in either name and then split the profit/tax at the end of the deal
You need to carefully plan names on title as this will largely determine who will be taxed.
It will also generally determine who is able to apply for finance – although it may be possible to add people as guarantors in some circumstances.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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