Hi,
After reading Steve’s book, I am now on the search for investing in Cash Positive Properties. I was hoping that someone could offer some advice as Steve’s book did skip the part of how his partnership worked in buying properties.
I have 2 companies, 1 which is my day to day business & the 2nd which is a very low matinence business with very minimal overheads but good profits. I intend to use this business to invest as is gives me that steady cash flow needed to keep investing, but, from what people have told me, as a company you need to put up 30% deposit for investment properties??? does anyone know if this true? if so, is there a way around it & otherways I should be going about investing as a company?.
Thanks
Simon
All my investing is through a company and all my purchases have been 80% LVR with no problems at all. The big issue that I have is not servacibility but security!
Firstly, you probably should not be investing in property using a company structure unless the company is trustee of a trust. SO check this witha good accountant.
If you do decide to use a company, it might also be wise to set up a new one. If the current company is a trading company, it could be the tartget of litigation (eg sued for a business related matter), this would put your properties at risk.
And if you are using a company to borrow, then you can use as little as 5% deposits. It is not really any different to borrowing in your own name as the directors must guarrantee the loan.
Terryw
Discover Home Loans
North Sydney
[email protected]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
A company can mess with your capital gains…won’t explain how here, take too long.
“xyzz ” hope you mean you have been doing it though a trust otherwise you may have some significant problems down the track.
A company can mess with your capital gains…won’t explain how here, take too long.
“xyzz ” hope you mean you have been doing it though a trust otherwise you may have some significant problems down the track.Hi,
Thanks for the feed back, I am only at the stage of reasearch so have not actually done any investing as yet, just wanted to know the best way to go about it in my situation.
Thanks
GMH754,
your post intrigues me …. what significant problems do you see?
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