Hi all,
Me and my friend are looking at buying an investment property. We do this because we both like the property but each of us alone cannot afford it. However we are not quite sure which is the best structure to use for this purchase. If you are well versed in this area, please kindly drop a few comments to help. Our situation is as follows:
Property: value around $1.5mil, rental will be around $1300 a week so at a fixed interest only rate of 4.6% it will be slightly positive cash flow at 80% gearing or slightly negative cash flow at 100%.
Me: work for myself, having a good income owning other investment properties so land tax is a consideration
My friend: first time investor, never owns a property and would like to keep his first home buyer status
We are looking at both buying in our individual names with 50/50 shares (tenants in common) or a property trust. Our priority is a flexibility of the structure (just in case one of us decides to opt out some time in the future),
and tax implication for each member.
I am not quite sure whether I have shared enough information for an expert in this forum to point me to the right direction so feel free to question me further
Much appreciate your assistance in advance
CL
Me and my friend are looking at buying an investment property. We do this because we both like the property but each of us alone cannot afford it. However we are not quite sure which is the best structure to use for this purchase. If you are well versed in this area, please kindly drop a few comments to help. Our situation is as follows:
Property: value around $1.5mil, rental will be around $1300 a week so at a fixed interest only rate of 4.6% it will be slightly positive cash flow at 80% gearing or slightly negative cash flow at 100%.
Me: work for myself, having a good income owning other investment properties so land tax is a consideration
My friend: first time investor, never owns a property and would like to keep his first home buyer status
We are looking at both buying in our individual names with 50/50 shares (tenants in common) or a property trust. Our priority is a flexibility of the structure (just in case one of us decides to opt out some time in the future),
and tax implication for each member.
I am not quite sure whether I have shared enough information for an expert in this forum to point me to the right direction so feel free to question me further
Much appreciate your assistance in advance
CL
Buying structure for a joint venture purchase
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