Hey all,
I’m new to this property investing. My previous forays into investments was one.tel so I am quite keen to avoid the share market.
From what I have read I think I want to set up a company and buy property that way. I only have about 15 grand saved at the minute. Is there anything I can do with that amount or do I need to have a bigger deposit?
Any help for an eager apprentice would be much appreciated!
Cheers
Companies are not eligible for the Capital Gains Tax discount for properties held more than 12 months. Discretionary trusts will be up for land tax in some states. A company as trustee for a discretionary trust might be what you need, but if you are negative gearing the losses stay in the trust unless you have a hybrid discretionary trust. The cost of setting up a structure could eat up a lot of your $15K as well as resulting in increased ongoing fees each year.
I suggest you do more research because it does not seem as if what you have come up with is what would normally be advised
You may need to pay stamp duty, mortgage insurance and legal fees. This varies from each state. As well as a deposit as the lenders are being more wary with lending money without a deposit.
Do a google search on Stamp Duty {insert State you intend buying in}
eg search term >>>> stamp duty victoria
to get an idea of what you will be taxed by your state government.You may need to pay GST as well if it is a new development.
Hi Silverrookie,
I'd suggest you speak to a good finance broker first, so you fully understand your position right now. That way you'll know whether you can start investing with what you've saved, or whether you need to look at other avenues. Any bank is going to want to know you can service a loan. Get some sound advice first so you can work out your next move.
I'd also suggest getting advice from a knowledgeable accountant about the structure that most suits what you wish to achieve through your investing.
Wendy
http://www.realestatewomen.com.auWendy Chamberlain | Chamberlain Property Advocates
https://www.wendychamberlain.com.au
Email Me | Phone MeMelbourne Buyers Agent & Sellers Advocate | Independent | Flat Fee
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