Setting up company

Viewing 7 posts - 1 through 7 (of 7 total)

Skye_30
Member
@skye_30
Join Date: 2003
Post Count: 8
March 2, 2004 - 11:38 pm
I am aiming to develop a property port folio. My husband has his own company that has a hyphonated name such as ***** ** – It Development Pty Ltd and we were told by the acountant that we should set the property folio up under our exsisting company name but with an extention. Such as ***** ** – Investment Group Pty Ltd. and with myself as a director.
Is this a good way to do this? I’ve seen mention of trusts, how is this different?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 3, 2004 - 5:29 am
AS it will be a different company, you can use whatever name you like. It may be better to use a completely different name as similar names may imply a relationship (people may dealing with the business may find out about the properties more easily).
Why is your accountant recommending a compnay strucuture? I would never use a company to hold an appreciating asset. Look into trusts as these are much better in my opinion.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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shaunwalker
Member
@shaunwalker
Join Date: 2003
Post Count: 403
March 3, 2004 - 5:36 am
i agree, never use a company to buy property, you fail to utilise the 50% CGT deduction.. the way around it is to have a trust fund, with the company at arms length as director.
hope this helps
shaun
Lead, Follow or get out of the bloody way
Skye_30
Member
@skye_30
Join Date: 2003
Post Count: 8
March 3, 2004 - 6:03 am
Ok thanx guys. Where can I find out all I need to know about Trusts?
woodsman
Member
@woodsman
Join Date: 2004
Post Count: 714
March 3, 2004 - 6:20 am
I have just received Trust Magic by Dale Gatherum-Goss (and read it in one night!). It was an eye opener.
You’ll need to get it directly from http://www.gatherumgoss.com
James
Shushar
Member
@shushar
Join Date: 2003
Post Count: 190
March 3, 2004 - 6:23 am
You can also get “Wealth Guardian” from this site which explains the advantages and disadvantages of the different ownership structures
https://www.propertyinvesting.com/resources/11.html
Highly recommended.
Shushar
“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
teabagted
Member
@teabagted
Join Date: 2004
Post Count: 10
March 4, 2004 - 2:15 am
I don’t know if your accountant knows a lot about property investment, but there are some that have it as one of their specialty areas. It may be best to find one of these. They may be expensive, but it is important to get it right. The benefits wills soon outweigh the cost.
Regards
teabagted