- tom123Participant@tom123Join Date: 2013Post Count: 91
Basically I want to buy investment properties and then on sell them using instalment contracts in victoria, Now I have a low income so I will be purchasing my first IP (within 4 months) in my mums name as she has a high income but I will be putting up the money.
what entity should I use to purchase my first investment property for this type of deal? Ideally I would like to purchase more properties in the future and on sell them with instalment contracts. For my first deal because I am a low income earner should I purchase it as a individual (being in my mums name) and then could I do a joint venture with my mum which said i got 90% of the profits? so the profit would be at a lower tax bracket? (the profits will actually be going to me and not my mum) I feel like this idea cannot work.
Also what type of asset protection come with these entities?
So I was wanting to know which entity would be the best for my situation, And also what fees I should expect to pay for these entities.
Cheers, TomHamish_QMember@hamish_qJoin Date: 2014Post Count: 8
What makes you want to invest in Victoria and what goals you want out of investing in property?
H.tom123Participant@tom123Join Date: 2013Post Count: 91
I want to invest in Victoria because I live in Victoria and i want to make profit and experience from investing in property…TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Complex question involving several different legal issues – do you need a credit licence for example?
Think litigation – the owner of the property and the person behind it. Is it a good idea to get your mum involved?Hamish_QMember@hamish_qJoin Date: 2014Post Count: 8
Being a new investor myself, i thought along the same guidelines but after being advised that "investment properties are boxes that make you money" it opened my eyes to thinking where else could i invest to get a good return on my money and start getting a portfolio together.
What you have up there sounds very complex and i think simplicity is the key. These forums are great for that but i'll let others post on here for you with more experience than i have but definitley dont box yourself into an area because you live there as you dont need to look at a property to ensure its growth as thats why we have Property Managers to ensure the property is being looked after.
Good luck.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
As Terry entity is second consideration and not something you can answer on the fly.
More important question is are you licensed to do so.
Without a Credit License there is no point in spending a small fortune on setting up a structure only to find you can't legally transact.
Yours in Finance