I suggest you talk to a professional about this.

Your company will still be required to pay tax on the profit it makes, transferring it to another company and then investing it will not help you avoid this.

If you own shares in a company, it is better to own them through a trust as it is more flexible in regards to tax, and safer. What if you are sued for some reason? Your share would be safer if held like this.

If buying property, then using a trust would be a better idea than company. If a partnership, then a unit trust would be good, with your units owned by your discretionary trust. Then you could distribute the profits as you please – to yourself, or a company you control making a max of 30% tax.

Most trusts will be setup to include future parters, children, grandchildren, relatives etc so your girlfriend will be included as a beneficary already – if a defacto.

Terryw
Discover Home Loans
North Sydney
[email protected]

None usually. However some banks may want you to get independent legal advice, which means you will ahve to go to a solicitor and listen to them explain you will be personally liable for any debt you guarrantee. approx $50 – $150.

Some banks also want to charge you an extra legal fee for their legal people to review your trust deed. approx $150.

However, I have had many loans ATF my trusts (discretionary) and have never been charged any extra. I also have clients with Hybrids and beleive that they have not been charged any extra either.

Terryw
Discover Home Loans
North Sydney
[email protected]

Oztexs

The trouble with that is you would be paying a lot of tax on the rent from your old home, and paying rent with after tax money, which would be painful. Why don’t you keep you loan on this so the interest offsets the rent abit, and then you could use it as deposit on your new home later on. Maybe a 100% offset account would be useful.

Terryw
Discover Home Loans
North Sydney
[email protected]

Someone asked a similar question recently. You would have to pay CGT and stamp duty at market value.

Don’t forget in the above eg, you would get 50% discount on the capital gain, so only $100,000 would be added to you income. you would pay around $50,000 tax max.

But there are still ways to decrease the tax you pay on the capital gain -eg pre pay interest on one or more loans in the same year.

This is another reason to buy in a trust structure – because you could then pass the gain onto the person with the lowest income.

Terryw
Discover Home Loans
North Sydney
[email protected]

Generally it is not a good idea to buy appreciating assets in a company.

Have a look into trusts as these are much more flexible.

Terryw
Discover Home Loans
North Sydney
[email protected]

Aussie Partner? That changes things.

Terryw
Discover Home Loans
North Sydney
[email protected]

cont.

As a self employed person, you also have the option of low doc loans. These are where you declare an income and do not have to provide any proof. Lvrs for low docs are around 80% max. Most of the major banks now offer low docs.

There are also no doc loans where you do not have to declare any income at all – lvrs around 65% max.

Terryw
Discover Home Loans
North Sydney
[email protected]

I have been here since the start (and on wealthtipsonline before that). I notice that when Steve’s book came out the site went crazy. I used to read everypost, but now can only manage to read a few of them.

Now that the book has been out a while, sales are probably dropping off and therefore so are the numbers of new people popping in here.

Terryw
Discover Home Loans
North Sydney
[email protected]

I think Ezidebit charge a fee. You might as well arrange a direct debit from the clients financial institution instead.

I used a PM on my wraps-just to put some distance between us.

Terryw
Discover Home Loans
North Sydney
[email protected]

Mark

I am not sure on whether you would be able to do that or not, but would like to point out that company title properties are much harder to sell and get finance for.

Terryw
Discover Home Loans
North Sydney
[email protected]