Hi All,
I am hoping someone out there can provide me with some ideas on how to structure myself. I am financial enough to buy-renovate-hold 2 properties. I am only interested in doing quick turnaround cosmetic renovations and then rent-out for a minimum 12 months to reduce GST, then re-value and decide on whether to keep or sell and repeat the process. I earn good money in my full time position so I don't need to have positively geared properties.
What I am hoping to do is as follows:
1. Take advantage of FHOG and buy 1 property in my son's name.
2. Have my son do most of the renovation work.
3. Pay my son a weekly wage (this is the area which I am unsure of, so if anyone has any ideas on how I can structure this it would be greatly appreciated).I have read some posts on this forum re: unit trusts and was wondering whether this could be a possibility.
Keenly awaiting any feedback.
Regards,
See my responses below:
1. Take advantage of FHOG and buy 1 property in my son's name.
[DHCP] Since you earned good money, you probably pay good tax too, hence why not buy the IP under your name so you get tax break?
2. Have my son do most of the renovation work.
[DHCP] Since you can afford to purchase 2 IP, put aside some fund to budget for the reno then get it professional done. The logic is, get the prof comes in do the reno; once the reno is completed, advertise the IP for rent and once the lease is signed while the tenant hasn't move in yet, get it revalue while the place is spot less so you can draw down your deposit in the form of rising equity. In addition, getting the prof , you have more time to look for your 2 IP.3. Pay my son a weekly wage (this is the area which I am unsure of, so if anyone has any ideas on how I can structure this it would be greatly appreciated).
[DHCP] Needless if you take the step two above.
nadaimee wrote:Hi All,
I am hoping someone out there can provide me with some ideas on how to structure myself. I am financial enough to buy-renovate-hold 2 properties. I am only interested in doing quick turnaround cosmetic renovations and then rent-out for a minimum 12 months to reduce GST, then re-value and decide on whether to keep or sell and repeat the process. I earn good money in my full time position so I don't need to have positively geared properties.
What I am hoping to do is as follows:
1. Take advantage of FHOG and buy 1 property in my son's name.
2. Have my son do most of the renovation work.
3. Pay my son a weekly wage (this is the area which I am unsure of, so if anyone has any ideas on how I can structure this it would be greatly appreciated).I have read some posts on this forum re: unit trusts and was wondering whether this could be a possibility.
Keenly awaiting any feedback.
Regards,
FHOG is not available for trustees.
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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