Forum Replies Created
Structuring for Commercial loan
Hi Guys
All the responses we are getting so far is that we have to go for commercial lending with at least 30% deposit.
Now other thing got to know that commercial lending cannot be done under personal names- it has to be trust or company.
Now it opens many other questions for us-
For trust- as losses cannot be distributed to the beneficiaries, why people go for trusts for property investing? For initial years any property could be negatively geared. Though these losses can be accumalted for years to set off against future income, as I understand.
Another question: If we get a commercial loan under a company, we have to register company under GST after income crosses $75,000-Does that mean we will charge GST on residential rental income?
If we tend to sell such property under company in later future, will the residential sales attract GST?
If we transfer property from Company to our personal names in future, will it happen at market value with all the formalities of stamp duties etc?
Can I please have your perspective of all the investors who invests in blocks of units- Under which kind of structure they prefer to invest as commercial lending cannot happen under personal names?
Cheers J
Kamal
Hello Terryw
Bit more info on the property we are looking to buy- all the units are have their own strata titles, will have separate contract of sale for each unit, but will be sold to one party at once time only as units do not have body corporate- is this possible to go for separate lenders?
Cheers ::)
Kamal
Thanks Terry, yes its one sale of contract.
one of the lenders already offered financing of 4 units with 30% deposit.
Cheers:) Kamal
Thanks Richard, I have emailed you back.
though we already have our residential property and 1 investment property- I have come across first time that residential property might also need commercial lending. What is the purpose of financial institutions to treat it commercial?
By end of all, question to all investors- is it worth to pay high rate of interest for block of units or it depends case to case?
Cheers :) Kamal
