Hey all,
I am considering embarking in a JV project. But I am not sure on the way it would need to be structured. For example, If say I was to purchase the block, then after knocking the house down, my JV partner was then to fund the build of two new houses on the block.
I assume in this example, the bank would not lend the JV partner money to build the houses when only I am the owner of the land?
Is there a way around this? Such as a business or trust? Other than the easy answer which is have the JV partner build with cash, which is unfortunately not possible in our instance.
Thanks for any help,
Nope hate to say doesnt matter structure you use a finacier will only lend to the entity that owns the Title and no one else unless of course the other party has separate assets they are prepared to put up as security.
If you buy the land your JV partner cannot take out a construction loan on the property to fund in his / her / their name.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Purchase in a company. It will limit liability and provide flexibility.
Talk to your accountant if this company should be acting as trustee for a trust or the shares owned by a discretionary or a unit trust.
you need to consider:
flexibility
asset protection
stamp duty
land tax
financeTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your replies Richard and Terryw.
Have made an appointment with an accountant for Monday, will will discuss these options with him then,
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