Hi guys,
I was wondering if I can get some expert advise on my future IP strategy in Melbourne.
I recently bought my first home last month and settlement is next Tuesday.
Here are my numbers:
Purchase Price - $245,373 (inc Closing cost + Stamp Duty)
I am going to pay about $40,373 as a deposit.
My mate and myself are planning to set up a company or trust to start our own Property investing venture. Similar to what Steve and Don were doing back then.
We are planning to acquire 1 br units around Universities and in chic suburbs. We are targeting international students and single professionals in Melbourne. Our goal is to buy 2 properties a year for now.
Please let me know your thoughts. Here is what I plan to do.
1. Set up a company or trust with my business partner
2. Sell my new property to the company or trust for half the deposit that I paid. My business partner will pay me the half of the deposit I paid. I will use that half and he will come out with the other half to put as a deposit for our second property.
3. We will use our properties equity to acquire future investment properties.
4. We are looking at negative gearing for now as our deposits will not be sufficient.
5. Our long term goal is to turn the properties to positive gear and sell for profit.
Since I will be paying the mortgage for this existing property. Do you think I can benefit in terms of taxes with this method?
* What sort of structure would you recommend me? company or trust?
* Do you think this will be a good strategy?
Please let me know. thank you
Mervin
I was wondering if I can get some expert advise on my future IP strategy in Melbourne.
I recently bought my first home last month and settlement is next Tuesday.
Here are my numbers:
Purchase Price - $245,373 (inc Closing cost + Stamp Duty)
I am going to pay about $40,373 as a deposit.
My mate and myself are planning to set up a company or trust to start our own Property investing venture. Similar to what Steve and Don were doing back then.
We are planning to acquire 1 br units around Universities and in chic suburbs. We are targeting international students and single professionals in Melbourne. Our goal is to buy 2 properties a year for now.
Please let me know your thoughts. Here is what I plan to do.
1. Set up a company or trust with my business partner
2. Sell my new property to the company or trust for half the deposit that I paid. My business partner will pay me the half of the deposit I paid. I will use that half and he will come out with the other half to put as a deposit for our second property.
3. We will use our properties equity to acquire future investment properties.
4. We are looking at negative gearing for now as our deposits will not be sufficient.
5. Our long term goal is to turn the properties to positive gear and sell for profit.
Since I will be paying the mortgage for this existing property. Do you think I can benefit in terms of taxes with this method?
* What sort of structure would you recommend me? company or trust?
* Do you think this will be a good strategy?
Please let me know. thank you
Mervin
