Hey All,
I was just hoping to get some feedback as to what structure people might use in my current situation.
My brother and I currently own a property that is an "ownership in joint names". We both have individual mortgages for the joint property that are split differently as he had a much larger initial deposit. That being said we both own 50/50 of the property and are both very easily servicing the payments.
I currently live in the property and my brother recently moved out and now i pay him rent for his portion of the property.
Things however are due to change soon as we will soon be subdividing the land and developing a property to the rear of the existing property. Once completed we plan to hold the property. We then plan to renovate the existing property which we will then also hold and rent out (My wife and I will be renting ourselves closer to her parents whilst we have children).
So I anticipate in around 9 months my brother and I will have 2 properties which will be neutrally geared. The idea then (all depending on how well our first development goes) is to draw the equity from the 2 properties and look for a new site which we will then hopefully take on a larger 3 dwelling construction. Then so on and so on.
So given that is our ideal plan I was curious as to what peoples thoughts on structure would be. I understand I should seek advice from an accountant which I of course will do but I always like asking here first so i can entertain some ideas. Structuring is quite complex and I am not sure what is the best vehicle. From the little knowledge I have I am thinking an LLC or trust but might be way off the mark.
Thanks in advance
I was just hoping to get some feedback as to what structure people might use in my current situation.
My brother and I currently own a property that is an "ownership in joint names". We both have individual mortgages for the joint property that are split differently as he had a much larger initial deposit. That being said we both own 50/50 of the property and are both very easily servicing the payments.
I currently live in the property and my brother recently moved out and now i pay him rent for his portion of the property.
Things however are due to change soon as we will soon be subdividing the land and developing a property to the rear of the existing property. Once completed we plan to hold the property. We then plan to renovate the existing property which we will then also hold and rent out (My wife and I will be renting ourselves closer to her parents whilst we have children).
So I anticipate in around 9 months my brother and I will have 2 properties which will be neutrally geared. The idea then (all depending on how well our first development goes) is to draw the equity from the 2 properties and look for a new site which we will then hopefully take on a larger 3 dwelling construction. Then so on and so on.
So given that is our ideal plan I was curious as to what peoples thoughts on structure would be. I understand I should seek advice from an accountant which I of course will do but I always like asking here first so i can entertain some ideas. Structuring is quite complex and I am not sure what is the best vehicle. From the little knowledge I have I am thinking an LLC or trust but might be way off the mark.
Thanks in advance
