Hi all,
I have temporarily given up on the purchase of a 2nd IP since the banks do not like lending to a 19 year old with only a $30 K income and a personal loan.
However, I brought up the topic of starting a form of an investment club with 9 other friends (they are between he ages of 22 and 26 and all of them earn above $55K a year and none of them have purchased their First home)
Basically the idea was for each of us to provide $2,000 of initial capital and then provide monthly payments of $150. With this money, we plan to invest in property and shares (prefer property though)
What I am not sure about is which structure we should use to purchase investment properties or trade in shares.
Basically the structure has come down to either being a Company or a unit trust.
With a company, there will be no initial costs, as my Dad was about to deregister his, but I can arrange for the transfer of shares from him to the 10 of us and also appoint ourselves as Directors using ASIC forms (484).
However I had a few other questions and if they could be answered, it would be very helpful.
1. What are the initial costs of setting up a unit trust?
2. By purchasing a property through a trust or a company, will it affect their ability to get FHOG in the future?
3. Is there any difference in Stamp Duty/Land tax between the two structures and how are they determined?
4. To what LVR do the banks lend to Trusts and Companies?
5. In regards to taxation, a Company cannot claim the 50% discount, which a trust can, but are there any other advantages of a company over a trust?
6. How much does a trust cost to maintain every year?
If anyone could help me out with the above, it will be very appreciated.
Thanks guys and gals.
I have temporarily given up on the purchase of a 2nd IP since the banks do not like lending to a 19 year old with only a $30 K income and a personal loan.
However, I brought up the topic of starting a form of an investment club with 9 other friends (they are between he ages of 22 and 26 and all of them earn above $55K a year and none of them have purchased their First home)
Basically the idea was for each of us to provide $2,000 of initial capital and then provide monthly payments of $150. With this money, we plan to invest in property and shares (prefer property though)
What I am not sure about is which structure we should use to purchase investment properties or trade in shares.
Basically the structure has come down to either being a Company or a unit trust.
With a company, there will be no initial costs, as my Dad was about to deregister his, but I can arrange for the transfer of shares from him to the 10 of us and also appoint ourselves as Directors using ASIC forms (484).
However I had a few other questions and if they could be answered, it would be very helpful.
1. What are the initial costs of setting up a unit trust?
2. By purchasing a property through a trust or a company, will it affect their ability to get FHOG in the future?
3. Is there any difference in Stamp Duty/Land tax between the two structures and how are they determined?
4. To what LVR do the banks lend to Trusts and Companies?
5. In regards to taxation, a Company cannot claim the 50% discount, which a trust can, but are there any other advantages of a company over a trust?
6. How much does a trust cost to maintain every year?
If anyone could help me out with the above, it will be very appreciated.
Thanks guys and gals.
