Hi All,
I am fairly new to investing and have 2 IP's. They have both been purchased in my name. I am looking for some guidance as to whether i need to set up some sort of structure if i am going to be able to purchase more IP's which i intend to do in the next 6 months. I probably need to sit down with a financial planner – but how do you know if they are any good? What questions should i ask before deciding they are the right one to help me progress in property investing?
Any help on this would be greatly appreciated.Hi Thommo
It is certainly a good question and one that gets raised here a lot.
The entity you use going forward with your future investment property purchases will depend on a couple of things some of which will include:
1) Whether the property is negatively / neutral or positively geared.
2) If negatively geared whether you need to claim the Tax credits thru your salary / income.
3) Your occupation. What are the chances of being exposed to potential litigation.
4) The value of your current assets. Did you need to protect these or future assets from external litigation.
5) Do you have dependants or a not working spouse?Etc etc.
There is no one structure to fit every client as everyones circumstances are slightly different and your needs and requirements will vary to the next investor.
Unfortunately a Financial Planner is not licensed to offer you Tax advice so no point in going down this route.
Another consideration is how the loan will be structured and again a Financial Planner unless they are Licensed to provide Credit advice cannot assist here.
In regards to the loan structures going forward further hard data would be required to ascertain the best way of funding the new acqusitions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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