Hi,
I'm new on this site and haven't found any topics I want to know about so here goes:
I've got a few ppl interested in investing in properties to form something like a syndicate, what's/where's the best way to start out? What are the investments strategies and taxation tips?
Thanks
NY
Best to see an accountant to deal with the structuring options. The most common is probably a unit trust but it can create some tax issues (eg, CGT event E4). An alternative is a partnership of trusts – it works pretty well and provides flexibility in terms of income tax on annual net rental income and CGT. However, it may not be the best structure if you wish to negative gear.
Eddie
[email protected]See an experienced lawyer. People go into these things with the best of intentions, yet this soon falls apart when the deal changes or peoples circumstances shift.
That's why it is important to consider the liquidity of the deal. For instance, what happens if someone gets divorced half way through the venture? Sounds extreme but it is the unknown in real estate that costs you the most!
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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