We are about to purchase our 4th IP $180,000. We have up to $60,000 in our business account that we can use to put down on it. Our business account is a seprate company not involved in Real estate. Because you’all are so creative we would like to know your thoughts on how you would go about purchasing this home. Would you lend the money to ourselves. Use all the money or some of it. It would be nice to get some out if we need to so maybe if we started with $40,000 in and then when the sale goes through we could add the other 20,000 thus leaving us with the ability to draw down if we need to. OMG the questions just keep rolling. Got any ideas.
P.S. we wont be getting much rent for this home as my mother will be moving in and she is on a full pension.[daisy]Beck.
“You have to leave your mouth open for a very long time before a roast chicken flys into it.” Early Proveb.Hi Beck,
I suggest you seek professional guidance from an accountant on this matter, combining funds from 2 separate identities (deposit etc from Pty & I assume the loan in individual names) may not be the most effective method.
Check with your accountant on the possibilities & the negative aspects involved with borrowing or contributing funds from the company.Or perhaps consider raising the required deposit & closing costs via available equity and offset this via the companies $60K. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
hi Rebecca2
unlike a couple of suggestion that you will get like, i’ll give you my account and you can put it in there.
Yes you need to get professional accounting advice if you have a company the person doing those accounts should be able to help, at all times any lending from you to it or it to you must be arms lenght and documented I do lend to my companies and they do lend to me put robert my account organises it and even cheques are reqested and counter signed it does become a little bit of a pain but a lot less if you get audited by the ato.
so chat to your accountant.
sorry to say this but if your up to your 4th ip you should have done this 4 houses back. when you setup your structureshere to help
Thanks for the advise guys.
Our accountant is either very conservative or not very conservative. Maybe time to see another.Beck.
“You have to leave your mouth open for a very long time before a roast chicken flys into it.” Early Proveb.There are various issues to be aware of when borrowing money from your company. If not done correctly, the money could be deemed a dividend at the end of the year. Please check with your accountant.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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