Robert, thankyou for you help. I was wondering if you could carify a few points for me?
1: So the 11 second solution determines whether it is worth my while to check out a property further? Why is the rental income divided by 2? And what would it mean if the solution is above or below the asking price?
2:Would purchasing under a company name mean you pay more personal tax as the profits filter down to you (as it is classified as earned rather than passive income?)?
Also do you think it best to invest under a company name when first starting out? And what about the “and/or nominee” clause within a property sale contract? Do you know if using this method would allow me to transfer personal properties to a business name without additional fees?
Thankyou so much for your help. KP .
Hi Kirsty
1.the 11 sec solution is a quick way to fillter though a lot of property to pick the best properties that will most likely be cash flow positive.2. purchasing under a company name to my understanding that you pay less tax cause the most you have to pay is around 32% and for a yourself you can be taxed up to 49% of what you earn.
investing under a company name when first starting out it all depends on how many houses you are going to buy in the long run if you were only going to buy one or two than you probly don’t need one but if you are going to buy 20 or more i would consider it.
if you are using a “and/or nominee” clause within a property sale contract in queensland you will have to pay double stamp duty but it can be avoided there is a great artilce in the australian property investor magazine dec02/jan03 on double stamp duty in queensland.
Hope this helps
Thanks Rob[8D]Thanks Robert for your help, it has been highly helpful and much appreciated [
].KP.Hey Kirsty,
It is always a good idea to set yourself up properly. While there are “standard” ways to establish a property “empire” some may not fit into that structure. Saying this I believe it is a must for investors to talk to a good accountant and solicitor to ensure the structure works for you. Get a quote for their time and a quote for their recomendations and use referrals from others who have been happy.Hope this helps you out.
Enjoy
AD [:0)]“Carpe diem, quam minimum credula postero.”
Lat., “Seize the day, put no trust in tomorrow.”
-Horace, OdesKirsty
do a search on ‘structure’, ‘trust’, etc on the forum and read the posts.
There has been quite a discussion on the relative merits of different structuring formats over the last couple of months.
Whatever you read, AD’s advice is good. You must seek individual advice form your accountant and solicitor to determine the correct method for your own circumstances.
cheerio
the B [
]ps: Steve McK & Paul Harper have just completed a new product called Wealth Guardian that discusses the different strategies using a case study and gives you worked examples of the results. I managed a sneek preview recently and it looks really good.
].KP.
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