Hi,
I have a full time salaried job and run a small business (I’m the company director while other family members are the shareholders) part time and am looking to buy an investment property. The business makes a small loss or breaks even. If I pay myself a small wage from the small business would this help with my borrowing capacity or should I just not pay myself because the lender would take into account the larger business loss as a result of paying myself a wage. Would your answer be different if the business was profitable. I’m trying to work out the right balance since I spend time in the business and was wondering if a lower or higher wage or no wage would be best.
Thank you.
yes it could help. You would need to argue that you are not an owner of the business and do not have access to the company financials. If the shareholders have the same surname as you this may be difficult though.
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
If legally you are on a payg as a employee, have been with the company on a similar salary and the business is through some trust structure or your not the sole owner.
then it should comply for you to be assessed as an employee, providing you do not personally have anything you would have to disclose that would decline you from the broker/loan writer.
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
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