Hi all, I am wanting to purchase our first investment property but not too sure how to word the Sales and Agreement Contract when we find one. I was told by our accountant that for tax benefits the higher income earner should be placed as 99% share and the lower earner at 1%, but what if the higher income earner became out of work, which obviously means tax benefits lost until they found work again, not very good if the property is negatively geared. Is there a safer way to word contracts if this was to happen?
But then what about purchasing positively geared property what is the best way to word this, as interest rates are rising it could become negatively geared?
Your thoughts, experiences welcome, thanks
Hi KCM
Unfortunately there doesn't seem to be a "one size fits all" answer. The best answer for you, is based on many things, including your stage in life. For example, in regard to the 99% / 1% arrangement you mentioned, you may chose to keep this property well into your retirement, with the result that you wouldn't be able to split the income from the property between you.
A Trust stucture may be best for your situation but, this too, has pluses and minuses. I'd suggest you have a chat with Richard Taylor, on 07 3720 1888, regarding the best possible stucturing of your loans.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Paul,
Thanks for your help, I shall give Richard a call.
Buying property is one thing but making sure contracts are worded in ones favour and purposes is another. My accountant is due back from his holiday next week so i'lI talk to him as well then.Thanks again
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