Hi there,
Myself and two friends are joining forces to start a property portfolio – I would like your opinion as to which structure would work best.
Option One: Simply to purchase property as tenants-in-common using our own separate structures (I already have a co. and hybrid trust, another has a family trust and the third already has properties in a company name).
Option Two: Set up a new company and Unit Trust and purchase as equal unit holders.
Would there be a problem with option 1 getting finance as three separate people would be wanting to borrow only one third of the purchase price and only putting up one third of the property as security. I wonder how many lenders would be interested?
We have sought advice from an accountant who has given us these two options but I wonder which would be better.
Any other options or thoughts would be welcome.
Cheers BJ
Originally posted by bjb007:Option Two: Set up a new company and Unit Trust and purchase as equal unit holders.
This one is better but why not set up another structure consisting of Company trustee and Hybrid Discretionary Trust, with the three of you buying equal number of units.
Just my thaughts
CATA
Asset Protection Specialist
[email protected]Option one would work, but lenders would only lend if you all guarranteed the whole loan. cannot have separate loans without this. Same with the unit trust scenario, bank will want guarrantees from trustee and all unit holders.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
