All Topics / Help Needed! / Buying property in company name or in my own name?

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of TommyTommy
    Participant
    @tommy1995
    Join Date: 2015
    Post Count: 1
    January 12, 2015 - 2:27 am

    Hi guys,

    Just signed up here and I’m pretty new to all this.

    Let me firstly introduce myself, My name is Tom, I’m 19 years old and I’m an apprentice plumber.
    I have been doing as much research as possible on investing as I have saved up enough money to buy my first rental property.

    My question is, before I buy my first property should I register as a company to buy the property under or should I do it in my own name? Or maybe is their another option that will work better?

    Thanks for your time guys, looking forward to getting familiar with the forum!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 12, 2015 - 5:35 am

    Hi Tommy

    First welcome to the forum and I hope you enjoy your time with us.

    Certainly don’t buy the property in the name of a Pty Ltd Company as you will loose the CGT concession.

    Being your first purchase you probably want to look at buying the property in your own personal name especially if the property is negatively geared.

    Down the track you could always look at establish a Discretionary Trust and having a Corporate Trustee.

    Just make sure your Mortgage Broker structures the loan correctly to maximise your deductions and also set up for further investment purchases.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 12, 2015 - 8:47 am

    I would only reccomend using a company in limited situations, if you have used up the land tax threshold for example. Loss of the CGT 50% discount means a company could pay up to 6% more tax than a person on the top tax rate.

    For the first one I would be inclined for personal name, perhaps incorporating some borrowing strategies to increase asset protection.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Ben EveringhamBen Everingham
    Participant
    @beneveringham
    Join Date: 2014
    Post Count: 7
    January 27, 2015 - 8:47 pm

    Hi Tom,

    I agree with Richard.

    Purchasing in your own name can have tax benefits, although purchasing in a trust can help protect your assets.

    I bought my first property in my partners name, all of the rest of the property we own is in a Discretionary Trust with a Corporate Trustee.

Viewing 4 posts - 1 through 4 (of 4 total)

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