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  • Profile photo of crgironcrgiron
    Participant
    @crgiron
    Join Date: 2005
    Post Count: 1

    Hi,

    I have just finished reading “Wealth Guardian” – which contains a wealth of information.

    If I set up a company with my husband as director and myself as the sole shareholder, I realize that the book says my husband will act as guarantor for all loans.

    My question is, if we want to increase our borrowing capacity – can I (as shareholder) also act as guarantor for the loans?

    Thanks for the input.

    Novice investor

    Profile photo of GreatPigGreatPig
    Member
    @greatpig
    Join Date: 2004
    Post Count: 284
    Originally posted by crgiron:

    If I set up a company … Novice investor

    If you are planning to invest in property, as opposed to running a development business, then you may want to consider other investment structures in preference to a company.

    Companies can’t get the 50% CGT discount that individuals and trust beneficiaries can, potentially requiring you to pay significantly more tax on sale (quite possibly 48.5% if the gain is large enough and the number of shareholders is small).

    GP

    Profile photo of angelodangelod
    Participant
    @angelod
    Join Date: 2005
    Post Count: 3

    Hi

    You really need to consider a trust stucture

    Please e-mail if you want further information

    Regards
    Ang

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes you both could guarrantee the loans, but this may hurt borrowing capacity in the long run and create more risk if something goes wrong.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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