After a number of years buying/selling property, I am planning to tackle property investing using a company structure. I have researched how to establish a company/purchase a shelf company, but am still hazy on how I use the company to purchase assets.
If I take the easiest option and purchase a shelf company, how do I obtain a loan for the company if the company is not producing income? At least it won't be until I purchase a property!
Lenders can you advise me on this please? Any other comments welcome.Why would you want to use a company to own appreciating assets? You will end up paying more tax.
Better do some more research. Look at trusts.Also, these days I wouldn't buy a shelf company. Just start a new one from scratch. You can do it for around $90 on the net or just go into ASIC and fill in some forms and do it there with only the ASIC fee, no set up fee. I think the ASIC fee is $400 for a new company set up.
Loans are the same as going on your on. The loan will be in the company name, but the lender looks for a guarantee from all directors, so it is their incomes which are important.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
For tax purposes, a trust is the way to go, as any Capital Gains, after 12 months, will be taxed in the hands of the beneficiary at a maximum of 23.25%, compared to 30% in the company. If you are concerned about asset protection, you could set up a trust with a company as the trustee.
Before setting anything up, best to see your accountant, as they know your situation, and can explain the pros and conc of all the different ways t oset up your new entity.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
