I have recently bought an old property which is rented currently. The idea is to knock it down and build 4 townhouses on it. I have engaged a company to manage this for me end-to-end for a fee.
I have some money in my offset account.
Is there an accountant or a wealth advisor on the best strategy to adopt in terms of what to do with my money in my offset account? Keep it there? Buy another property and rent it out? Put it in my mum’s bank account so I don’t pay tax on it? I am lost what the best strategy for me is and need someone with the right skills to give me some advice.
My accountant just does my tax return.
Your guidance is welcome and really appreciated.Thank you
You need tax and legal advice as well as credit advice.
Using cash to invest has tax issues. can you borrow the lot without using cash?
If the cash is in the offset account on your main residence then when you withdraw it the interest payable will increase but this interest won’t be deductible.
Putting your money in someone else’s bank account involves many issues legal advice is needed here.
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
I have an investment property and the offset is for the investment property.
I am unsure whether it’s better to keep the cash in the offset, buy another property and rent it, or put the money in someone else’s account so I don’t pay tax. The money came from their account so legally it is theirs and I can give it back to them I suppose.Thats why you need specific advice, because you are only giving part of the story and these things are important. If you had legally borrowed from someone else first you could have set it up in such a way as to maximise tax deductions going forward, but you may have ruined your chances now.
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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