Do I need a company?

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

Sandyman
Member
@sandyman
Join Date: 2004
Post Count: 16
August 5, 2004 - 12:26 pm
I’ve been doing a fair bit of research, listening to CD’s attending seminars and reading books and magazines.
Everything points towards starting a company and establishing trusts under it.
I spoke to an accountant today and he said that this would be an overkill if I am just going to get involved with residential property investment. It’s OK if I’m going to get into commercial property or property development.
Initially it will only be residential property, but who knows how far I will be able to go.
Is he correct in what he says or is it best to start off the way I want to continue?
Thanks
Gloryboy[confused2]
Fast Lane
Member
@fast-lane
Join Date: 2004
Post Count: 527
August 5, 2004 - 1:11 pm
The right investment structure (trust, company), I believe, is as important as the right property. I disagree with your accountant. If he has made good money on property, go with him, if not get another accountant! Hope this helps- G7
gmh454
Member
@gmh454
Join Date: 2003
Post Count: 537
August 6, 2004 - 3:18 am
Originally posted by g7:
The right investment structure (trust, company), I believe, is as important as the right property. I disagree with your accountant. If he has made good money on property, go with him, if not get another accountant! Hope this helps- G7
Had a client years ago who bought two investments properties with his brother. Spent #### on two trusts, a unit trust and two trustee companies. All excellent advice ..except they were negative geared. Lots a tax losses accumulated for a rainy day. Got around it by lease backs etc., but was a lot of monet for nothing.
GreatPig
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@greatpig
Join Date: 2004
Post Count: 284
August 6, 2004 - 4:01 am
Originally posted by gloryboy:
Everything points towards starting a company and establishing trusts under it.
Depends on exactly what you mean by this.
If you mean buying the properties in the trust(s) and using the company as the trustee(s), then I gather that’s a common scenario.
However, buying appreciating assets in a company is generally not a good idea as you lose the 50% CGT discount.
GP
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
August 9, 2004 - 4:04 am
It doesn’t really matter whether you are buying residential or commercial – it would make no difference.
At least consider setting up a trust. Talk to another accountant for a different point of view.
Terryw
Discover Home Loans
North Sydney
[email protected]
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
Sandyman
Member
@sandyman
Join Date: 2004
Post Count: 16
August 10, 2004 - 4:40 am
Thanks for the advice Guys
I’ve arranged to speak to another accountant.
Gloryboy
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 11, 2004 - 4:41 am
let us know how you go.
Terryw
Discover Home Loans
North Sydney
[email protected]
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