Hi everyone,
Does anybody know how land tax is calculated on a company title apartment? Is it as per a strata title? I am looking to buy this apartment in Melbourne.
spyder
I am not sure, but I think the company that owns the property would be assessed and this split up between the shareholders.
There are many problems with company title – so beware.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
Terryw wrote:IThere are many problems with company title – so beware.Can you elaborate on the problems/pitfalls to be aware off? Or point me in the direction where I can find these out?
Thanks.
With company title the owners of the property don't really have title, but they own shares in a company which owns the land. each share entitles the owner to reside in a particular property.
Often there are conditions that other shareholders of the company have to agree to the share of shares or a new shareholder – this can be good as the group can control the type of people living in the building.
The problem with this is that it is harder to sell the property. This makes banks reluctant to lend to buy these properties. It being harder to get finance also limits borrowers which in turn limits the ability to sell even further.
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
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