Hi,
I wonder if anyone can help me. I have been told that moving the mortgages I have on investment properties to ltd company rather than myself would prove me with protection if the worst was to happen. I mean if for instance in the future I could not meet the payments for whatever reason, and the properties were repossessed, the ltd company would go under not affecting the director i.e. myself. So I would not loos the property I live in, which would not be owned by the company.
Does anyone know if this is accurate or not.
Cheers
[cap]Hi Bez3000
i believe this is the case
you will usually find that if you buy a property in a company then you will be asked to make a personal gaurantee anyway. So they would want you to pay any money owing.
Secondly if you buy in a company then you will loose the 50% discount on capital gains that you receive if you hold the home for 12 months. (companies pay CGT on the full profit)
Thirdly is you transfered the property to a company you would create a sale and have to pay tax on any profits, secondly you would have to pay stamp duty on the purchase.
I’ve lived in NZ for the past 2 years so maybe things have changed since i left Aussie ??
regards westan
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