Hey all,
1. Just a quickie in regards to costs of establishing the neccessary structure to protect my assets. As I see it I need a company (P/L) and a family trust to begin with. How much has this cost you guys/gals who have done this exercise (to set-up)?2. I currently have two properties that are positive geared in my name and my own home. I realise I have not structured this the best way but is it worth paying another lot of Stamps to sell them to my trust ? Your thoughts or real life experience would be invaluable.
Thanks
AD [:0)]Because I am in a high risk litigation profession, my solicitor has advised a company structure and to place each property in a separate trust. Any profits in one trust can be offset against losses in another trust. We also have our home in our names and properties.
I try and maintain them negatively beared and plan to borrow against one of them again, for a deposit on further properties.
Should there ever be a problem, at least they are heavily mortgaged and mostly owned by the bank. the cost of setting up a company was $2000 and each trust, I think will cost $500. I think the cost of transfering property to another entity is fairly prohibitive in terms of stampduty.Thanks Regina,
Your structure and approach sound like the style used and ecommended by a lady I heard speak the other evening, Dymphna Boholt. She seems very switched on so I hope it goes well for you. My question though for you is why not have the property positive geared so it can replace income ? As Mr McKnight Snr once (or twice) said you can’t go broke owing nothing.I plan to have all my properties in the company and trusts positively geared, one comes with bungalow, a great cash flow proposition. The others, I plan to sell off the back yards, subject to council approval
and reduce the mortgage to a positive cashlow.
The property in our name, well its only one negatively geared (block of 3 units)property and gives us at least some tax deductions.
It has had great capital gain,so I plan to get it revalued to borrow more against it for further property deposits. This will throw it back into negative gearing but I’ve brought more property and increased my assett base which will be positively geared. I hope this makes sense.Yes indeed, It sounds like you definitely know what you are doing. Hope it keeps going well
AD[
]
]The topic ‘Company costs.’ is closed to new replies.
