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If buying property through a trust/company structure for the first time do all lenders require a 20% deposit?
Is there a way around this by going guarantor or is this just how it's done?
Thanks.
Hi Michael,
Thanks very much for your reply, it was a mortgage broking firm based in Brisbane who advised me of this. I then contacted a lending manager from CBA we know who said the following 'if a company/trust is involved we will have to order a trust investigation report (required). Investigation will be done by Minter Ellison Lawyers and fees will be debited from your account (should be under $ 300). We might also need a letter from your Accountant certifying that the company/trust was set-up for the purpose of buying residential investment properties.'
He also said we would likely need to go guarantors as we are the directors of the company and it has no financial history, is this information correct?
Hi Michael,
Thanks very much for your reply, it was a mortgage broking firm based in Brisbane who advised me of this. I then contacted a lending manager from CBA we know who said the following 'if a company/trust is involved we will have to order a trust investigation report (required). Investigation will be done by Minter Ellison Lawyers and fees will be debited from your account (should be under $ 300). We might also need a letter from your Accountant certifying that the company/trust was set-up for the purpose of buying residential investment properties.'
He also said we would likely need to go guarantors as we are the directors of the company and it has no financial history, is this information correct?
Hi Rolf,
It's a family trust with the Company named as the trustee, with my wife and I named as company directors. We have also been told recently to remove my wife as a director and make her a shareholder instead as it would provide further asset protection, but again, I'm unsure if this is correct also?
Hi Rolf,
It's a family trust with the Company named as the trustee, with my wife and I named as company directors. We have also been told recently to remove my wife as a director and make her a shareholder instead as it would provide further asset protection, but again, I'm unsure if this is correct also?
Sorry, I just have one more question but it may require a bit of background first.
I am a PAYG employee in a secure, pretty high paying job in the resources industry and my wife has recently become a stay at home mother to raise our first son (2 months old) and we don't have any intention for her to return to work soon, at least 4+ years. I am 31 now and intend to work full time in the same industry for at least the next 10 years.
We currently have three investment properties which are all in my name (purchased two before we met and developed one to get the third) and a PPOR in both of our names.
We want to purchase more property using the family trust we recently set up with the intent to develop and hold, using the company we also recently set up as the vehicle to undertake the construction of the dwellings in these developments. We would like to replicate this over and over with the intent to combine this strategy with Rixter's CGA type strategy so that one day we can live off the equity.
What I would like to know is have we chosen the correct/best structure to do this, should I be the sole director of the Company for both asset protection and finance reasons and for anyone who has done this or similar, can you please provide any advice or recommendations of how we can successfully achieve our goal?
Thank you.
Ben.
Ok, so for your average layperson (myself) who has very little understanding of structuring, how do they know what structure is right for them and their chosen strategy?