Hi all,
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, Tom
Hi Tom,
What makes you want to invest in Victoria and what goals you want out of investing in property?
Cheers,
H.
Hi Hamish,
I want to invest in Victoria because I live in Victoria and i want to make profit and experience from investing in property…
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?
Terryw | 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
Hi Tom,
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.
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.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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