Any suggestions

Viewing 5 posts - 1 through 5 (of 5 total)

holash
Member
@holash
Join Date: 2005
Post Count: 4
March 17, 2005 - 3:38 am

My Husband and I have 2 rental properties in joint names, over time they are now positive cash/flow. We wish to start a business with our daughter & her hubby.
We are thinking of moving the 2 properties to kick start the new business.
What is the most cost effective way to do this, if we sell them to the new business are we going to have to pay stamp duty etc.
Any help would be greatly appreciated.
Maeve[suave3]
M.F.Hollow
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 17, 2005 - 6:25 am
What about just gettting a loan securred on one or more of your properties and then use this for your business setup. Interest would be deductible, and you could keep your properties and save on selling fees, CGT etc.
ps. you should not have property owned by a trading entity as it will be at risk if the business goes down.
Terryw
Discover Home Loans
Mortgage Broker
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
willi
Participant
@willi
Join Date: 2002
Post Count: 186
March 17, 2005 - 10:40 am
I agree with Terryw – do the numbers because potentially the money you outlay to cover CGT etc etc could be MORE then the total interest payable on a redrawn loan over its first 2 -3 years. If this is the case it would be alot more cost effective. cashflow freindly and you keep still the asset.
Cheers,
Pete
…Beware of the dreamtakers…
BTW – I was part of the MAP Program and am more than happy to answer and questions/comments you may have – Happy Investing…
holash
Member
@holash
Join Date: 2005
Post Count: 4
March 17, 2005 - 12:03 pm
Thanks for your suggestions –
Would it be better to set up a Partnership between the four of us, or get a Company?
Many Thanks
Maeve[/font=Tahoma[suave3]
M.F.Hollow
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 18, 2005 - 2:54 am
Depending on the business, maybe neither.
If it is a general trading business, probably a company – for the limited liability factor.
If it is proerty, look at a trust, possible a unit trust and/or a discretionary trust. You may also need a company as trustee.
Terryw
Discover Home Loans
Mortgage Broker
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