One of the avenues we will discuss with our accountant this week, is taking out a formal loan for a property purchase, from one of our companies.
One con seems to be that the loan must be made at commercial interest rates.
Another is I don't know how the first mortgage being held by our company would effect using the property as equity for a future loan with a bank.
Pros include, we get all the tax deds, interest doesn't flow to a bank, and obviously our company can be more lenient with variations in repayments.
Has anyone done this, and can you advise of pro/cons.
One con seems to be that the loan must be made at commercial interest rates.
Another is I don't know how the first mortgage being held by our company would effect using the property as equity for a future loan with a bank.
Pros include, we get all the tax deds, interest doesn't flow to a bank, and obviously our company can be more lenient with variations in repayments.
Has anyone done this, and can you advise of pro/cons.