I am new to property investing. I bought a property in Emerald in QLD about 3 years ago as my PPOR and did a reno on it. Purchased for $250k now valued at $343k. I have moved out of this property and it is rented for $500/week for 12 months on a company lease. I bought a newer property also in Emerald this year aprox 4 weeks ago at a cost of $295k. My question is based around going forward is it advisable to continue to purchase in my name or setup a company and buy in the co. name or as seems to be the most popular a trust( i thought this was quiet expensive). I am not in a job were being sued is a reality. My primary goal is to buy and hold cash flow + properties. I am in a lucky position were my employer will pay for me to do improvements/reno my PPOR to the amount of $16k / year and I can use this to put in a new kitchen/bathroom etc and leverage off the equity I hopefully have created. Any advice is appreciated, thanks.
Unfortunately there are many reasons, other than your job, that will allow a clever lawyer to come after all your assets.
Just my opinion and please don't take this as advice but I purchase in a unit trust with the units owned by my family trust (with a corporate trustee).
To me the idea of spending $2K to $3K to setup such a structure is peanuts in comparison to the value of the assets this structure is protecting.
I also don't scrimp on the professional advice I take when setting up such a structure. There were many aspects that I'd not even considered when I sat down to talk about it with my solicitor. It was definitely a matter of "you don't know what you don't know"
This professional advice ensured I got the finer points of the structure right for my personal situation.Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul, as a newcomer to this, I am open to all and any information.
Hi Wakebrown,
On a similar, but slightly different, note I wonder about the wisdom of having your portfolio so heavily Emerald focussed.
Puts all of your eggs in one basket – not my cup of tea and just food for thought for you.
Hi Derek,
Yes I do agree that putting all eggs in one basket is bad, but starting out I wanted a market I knew well and was confident about investing in. I do want to invest elsewhere, yet I have stalled as to how to set up my portfolio. I do have my eye on a couple of other areas in QLD and interstate, but yet to take the plunge.
Cheers
This professional advice ensured I got the finer points of the structure right for my personal situation.
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