Forum Replies Created
I'm not an expert and cannot offer advice but my understanding is to always keep the business and any IPs completely separate. Some even recommend that the business be split as well, such as if you have plant & equipment this is owned by a trust and leased to the business. I personally will be buying IPs in a discretionary trust with a non-trading corporate trustee.
I understand that the idea is to put as much distance between you and any assets, liabilities, etc and just benefit as a beneficiary. This is for asset protection as well as litigation protection.
But as I said, I am not qualified to give advice, this is just what I have picked up along the way and you MUST consult with qualified people such as accountants and solicitors. But make sure they know what they are talking about (always a tricky one to ensure).
keith
Finance & structure.
Finance: what is the best way to finance the purchase of IPs: refinance PPoR; LOC; IO; P&I; etc.
Structure: what structure to buy in: own name; partnership; trust; etc.
Make sure you get some good advice from people who live & breath this stuff, not your tax accountant or divorce lawyer or your mate down the pub! There are some great people out there who do this stuff everyday. Yes you will probably have to pay for their services and they probably won't be "cheap" but they will offer value.
I think people generally get hooked on interest rates and fees but don't fully consider the best way to structure their finance. They fall for the bank offering them interest discounts and fee reductions to borrow everything through them and end up cross-collaterised and then end up buying in joint names or whatever without thinking of long-term tax and asset protection issues.
get it right from the start and spend some time getting "market ready" before you purchase your first IP.
Keith
