Forum Replies Created
- gibbo1 wrote:Even though you only require 1x $1 share, in case you wish to sell a portion of your company in the future you may be better having something like 100x $1 shares. Saves filling in and paying for ASIC forms to modify the number of shares down the track. Having 100 shares gives greater flexibility if you did want to sell anything off. eg 5% to mum, 5% to dad and 25% to the girl friend
Is having 100 x $1 shares the same as having 10 x 1c shares?
A hybrid trust was considered, although theres some issues with the ATO re the distribution of income to unit holders. They seem to make sense on paper, but advice has been to stear clear for the moment until a court hearing disolves or upholds the issues.Thanks guys for the info,
I'll be getting my solicitor to set it up but am still going to have a crack at the forms myself and run it by him when i go and see him in the next few weeks. I won't submit any forms but for interest sake will try and structure it myself before i get it done properly. This was what i had in mind… Set up company with myself as sole director and secretary. (govt employee)Have 10 x $1 fully paid shares.
Set up family trust with the abve company as the corporate trustee. Get old matey up the road to lodge $10 as settlor and have have myself as appointor??? (can appointor be a beneficiary?) . Beneficiaries will be mum, girlfriend and myself.
We all (mum and my partner and I) have our own equity for deposits on properties but only my partner and i have the cash flow to finance any loans. Does this work? Sorry about these questions that don't have information to support them but my interest in discretionary trust structuring has been raised and i want to understand them before i set one up. My accountant did a big diagram on the whiteboard to indicate how it worked but its only started to become clearer with the research i'm doing.
Good points made about accountability and also terry for the number of shares, but how does a trust borrow money? From what i understand the beneficiaries act as guarantors but how does one make their equity/cash flow available to borrowing within a trust?
Sorry if this is asking a bit much and like i said, i will be getting proffesional advice but would like to know before hand because i don't know what the lawyers don't know (especially relating to borrowing money and what lenders require for loans to trusts).
Thanks again.
Jason
Tell meI'd definately go with a broker. I'm stuck with a crap Wizard loan that i don't even have the option to swicth to IO now that i have rented the property out. I'm looking at another IP at the moment and am tied up with a really inflexible loan product. I can recomend a really good mortgage broker in sydney (nth shore). He knows his stuff and has been in the industry for years.
Thanks raddles,
The trust will be entirely for buying some investment property's. The company won't be trading at all and i don't see the risk of being sued as high. Is there somewhere that i can get advice on the best way to put it together?
This is my plan…
Get asic form 201 and complete it with myself as director and sole shareholder with $1 ordinary share. Send it away for $400 and obtain my ACN. I understand you can just adopt a 'generic' company constitution for a shelf company.
Then, via http://www.lawcentral.com.auor similar, start a trust with the company as the corparate trustee. I would be the appointor with my girlfriend and i both as beneficiary's.
I know its a horse for courses, but i'm assuming that thousands of people must have this as part of their structure and hoping that there is model that is common for what my intentions are. If anyone has any ideas i can then determine whether to do it myself, do it myself with some profesional revision or just spend the dough and get it done for us (damn expensive for what seems like limited work or knowledge required… bloody lawyers…lol)
Jasonexpenses on IP like management, interest, etc are deductable too as a loss.
Richard, Somehow i knew you'd be the man for the job. Options…?
Mum has 40k remaining on a 260k ppor and low income.
My sister and I both have investment properties but we want to utilise her available equity to improve her position for retirement. We will be using the equity in mums place as a deposit on property soon. Investment strategy will be either reno, duplex, subdivision,etc, not sure yet. Profit will be realised after a year. My sister and i will be fully responsible for the loan repayments for the project and mum will simply continue her repayments at the same rate she is now until we are able to pay off her mortgage entirely.
How do we do this? Do we have to be on the deed of her property to use the equity for a loan between my sister and I? Can we take out a joint loan whilst protecting mum from any further repayments?
JasHave a look at some space saving options that appear on some reno sites. They have some really good designs for intergrated bathroom/laundry, cupboards and all sorts of stuff. Hidden washer/dryers can be accomadated through a well designed bathroom.
I've seen some really cool bathrooms with hidden laundry facilities. I hate shared laundries in units!you've got one mate scotty. thanks
Thanks mick, big help. This option of strata titling a block has just been raised yesterday and we're doing all the sums on some accurate figures that will be compiled during our DD. I just thought (rightly so) that someone on the forum could give me a heads up and pass on some of their experiences. Thanks for sharing yours. Good luck with it.
How are you finding the time frames required for each of the things you've listed? Do you think that strata titling your block will contribute greatly to your holding costs. The cost of purchasing the block and some renos is above what we originally planned to spend so i would like to forecast as accurately as possible how long i'll be hanging onto the units before renting/selling them.
JasonThanks Jon,
These units are brick. I've encountered the older style you identified and the cost of fire rating the building was going to be too big. I was advised that the beams and structure of the building had to be re-done to isolate each unit.
I'm after a rough estimate of costs that i can expect for 6 x 2 bedroom units with 10 garages and 3 common laundry's.
Jason
