Is this worth it??

Viewing 7 posts - 1 through 7 (of 7 total)

MasterREL
Member
@masterrel
Join Date: 2003
Post Count: 52
July 27, 2004 - 5:03 am
I want to buy a commercial property ,but at this moment still saving for a deposit.I bought shares to try to boost my return which are doing well.Heres the prob.I bought the shares in a company pty ltd(so there trading stock)but once June 30 rolled around will I be slugged 30% tax on my initial investment of $15k.And when buying a property will the interest on a loan taken out by a company be more than a personal home loan.
Saskatoon
Participant
@saskatoon
Join Date: 2002
Post Count: 112
July 29, 2004 - 4:01 am
Hi MasterREL,
most forum opinions indicate that you shouldn’t buy property using a company structure – do a search or get professional advice before committing. Also, it may be best for accounting reasons to keep your property investments separate from your share investments.
Terence McMahon
HomeWin
Finance
Julia
Member
@julia
Join Date: 2004
Post Count: 217
July 30, 2004 - 2:24 pm
MasterREL,
You will not be slugged 30% tax on your initial investment if you are considered a share trader. Sure the value of the shares will be brought into account as a credit to closing stock but the original purchase will be brought into account as a debit to purchases. Thus cancelling each other out.
The biggest problem with buying investments in a company is it does not qualify for the 50% CGT discount.
[email protected]
http://www.bantacs.com.au
If you can’t BAN TACS at least minimise it legally
MasterREL
Member
@masterrel
Join Date: 2003
Post Count: 52
July 31, 2004 - 10:59 pm
Thank you all for the help.Without these forums God knows how slow my progress would be.
Misty1
Member
@misty1
Join Date: 2004
Post Count: 348
August 1, 2004 - 3:38 pm
No truer words,MasterRel!
RobJanice
Member
@robjanice
Join Date: 2002
Post Count: 27
August 8, 2004 - 10:49 am
And when buying a property will the interest on a loan taken out by a company be more than a personal home loan.
Master REL
You will find in generally a higher interest rate and much shorter loan repayment period.
Cheers Rob
“Every family is born with a father as the banker.
thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
August 12, 2004 - 12:20 pm
Hi MasterREL
My recent experience buying a commercial property showed interest rates to be about 1% higher than res rates, LVR max 60%, term max 10 years.
However, if a res property is used as security for the purchase of a commercial property, res interest rates apply. Next time, I’ll buy the res property first. [arrowhead]
live’n’learn
cheers
thecrest
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