Hi – I would really like some advice and sadly even after consulting my accountant and a financial advisor I am none the wiser only confused
we are a fairly young couple in our late 30s and have two young children. I am earring over 90k and ,myy partner over 250k in self owned business . We have three properties – our own house owning just over 200k and a investment property purchased in our own name. we are in the process of purchasing a third ppty it are not sure whether to do this in a trust structure or through our company. We have a SMSf but not enough to purchase the ppty through. If was suggested that we purchase the ppty through a PIT but were then told by a separate person to purchase the ppty under the family trust. The intention is to continue purchasing more ppty through this investment in the long run.
Any suggestions greatly appreciated……
Buying through the Company is not good. I have had 2 clients go through liquidation in the last year that lost houses that were in the company of their previously successful business, they would not have lost them had they been separate.
Looking at your overall structure would be an important step and seeing where you can go with it in the future. Talking to professionals who actually do it themselves is a great first step
Advice from a mortgage broker and lawyer is also important to make sure your structures are right for financing and asset protection.
If you are in Sydney Terry Waugh is both of those and a financial advisor also.
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
Not sure Terry is a Financial adviser yet although of course i stand to be corrected.
Last time i hear he was chalking up the exams but certainly for a lawyer in Sydney you cant go wrong.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Aosv
You say you do not have to buy the property thru your SMSF.
Are you sure that is the case. What is the purchase price and what do you have in the Fund.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi.
Yes, I am not yet licenced to give financial advice yet (planning to be eventually), but can give legal and credit advice. Richard, I am looking at PIS who you recommended way back for my AFSL.
For Aosv, you should really look at possibly getting your spouse restructured for business into a trust structure of some sort. Another trust can then be set up for the purchase of property and it there is a loss then the business trust could distribute to the property trust to offset the loss and overall to save tax. Negative gearing in a trust.
Watch out for land tax issues.
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
Hi –
are you suggesting that I look at forming another trust ie property in addition to the family trust already existing? I have investigated both and understand that banks do not look favourably at loaning out further money for investments if pptys are in trust. Also, the title office will not settle if ppty is in trust (I'm in melbourne and settlement is in July).
I don't have enough in smsf to even consider a deposit to the ppty 20k under to be precise. My main goal is tax benefits and asset protection in that order. Any ideas on what structure (company, individual -spouse or PIT,family trust ) would be truly helpful. Not really willing to spend 3000 again for financial advice to be told again that its really my choice and have already told me what I know! )
Aosv,
I have no idea if you have an existing family trust. But if you do you should not use it to buy property especially if it is conducting a business.
Your investigations have lead you down the garden path, becase as a mortgage broker I can assure you that banks do look favourably to lending to trusts and companies as trustees of trusts – I just got a loan approval on 4.30pm on Friday for a cllient who is a company as trustee of a trust.
As a lawyer I can also assure you that the title office do register transfers for properties which are held in trust. Even in Victoria. My trusts have done this dozens of times. A trust is not a legal entity so is not recorded on title, but the trustee's name is.
$3000 is a lot of money for financial advice – what you really need is legal advice if you are investigating structure. I charge $500 for a consultation on structures and make recommendations.
It is impossible to advise based on the limited information supplied above.
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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