Hi all,
I am interested in buying two retail shops in NSW and would like to know what is the lender's required structure for commercial property. Normally for my residential IPs, I bought them in my company's name and the loan is taken in my personal name so that I can claim the tax deductions for the interest payments. However, I am unsure whether I can employ the same strategy to acquire commercial property and still claim the interest payments as deductions against my income?
Thanks for your help.
Cheers
johnHi John
I think you are getting a little confused with your interpretation of the structure you may have employed previously.
If the property has been purchased by the Pty Ltd Company then the loan would be in the Company name as well with a personal guarantee given by the Directors (or Director) wich i assume is you alone.
If the property was purchased in the name of a Hybrid Unit Trust then the loan would be in your name so that you could purchase Units in the Trust.
Purchasing a Commercial property is exactly the same although the only difference from a lending perspective is that you will need to offer up more deposit. Depending on the type of security you are looking to purchase you may be limited to 70% LVR.
Richard Taylor | Australia's leading private lender
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