All Topics / Help Needed! / EQUITY ISSUES

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  • Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Happy easter to all:

    My name is Johann 22 years old
    just bought my first property under a comany name (long sotry there)
    for 185k. My property is currently valued at 225K+ due to alot of development in the area eg, new esates and more shops poping up left right and center. This proeprty is currently being rented for 175 a week.

    By next year i would like to purchase another property need some adivce,
    Since my current property in under a company can i use this equity for another property under my own name or does it have to be
    under the same company name?

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    Ask your current lender if you can open a line of credit against 80% of company's property's equity in your name.
    Use the LOC borrowings for the deposit for the next property in your name. If more than one director you may need to get their permission and may have to seek legal advice for all the directors.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Having a company complicates things from a taxation point of view. If a company lends one of its assoicates money there are a whole host of rules which if they aren't applied property will mean the ATO could deem the loan to be a dividend payment and tax you on it!

    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 JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi Guys!!!

    Thanks for the great advice guys cheers

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

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

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