Hi All.
I've been reading the forum off and on for a while now and I'm hoping someone would be kind enough to give me an opinion on structuring now it's time to make a foray into small scale property investment.
We've got the opportunity to buy into a syndicate that owns a commercial property (motel) due to the death of the current majority owner. A new 30 year lease is now in place, and yielding 8% net. The new majority owner will be my father-in-law, so we would be silent partners with no real involvement.
We would be looking at taking a 10% stake funded 100% by increasing the mortgage on our residential property. We would probably look at P&I on this as the cash-flow isn't required, it's more a long-term hold and build equity investment at this stage. I'd look to put the shares in my wife's name as she has the lower tax rate (working part-time).
Does this sound like a reasonable structure? I've read some of the info around LTC's but I'm not seeing any benefit at this stage over doing it as individuals. That said, I don't know what I don't know and it may be there are long term benefits to setting up an LTC now? Would I be best to run this past an accountant?
Thanks for any advice in advance, I need to make a decision soon and I'd like to get started in the right way...
If anyone has any thoughts on a good floating rate to aim for currently, I'm all ears!
Cheers,
Steve
I've been reading the forum off and on for a while now and I'm hoping someone would be kind enough to give me an opinion on structuring now it's time to make a foray into small scale property investment.
We've got the opportunity to buy into a syndicate that owns a commercial property (motel) due to the death of the current majority owner. A new 30 year lease is now in place, and yielding 8% net. The new majority owner will be my father-in-law, so we would be silent partners with no real involvement.
We would be looking at taking a 10% stake funded 100% by increasing the mortgage on our residential property. We would probably look at P&I on this as the cash-flow isn't required, it's more a long-term hold and build equity investment at this stage. I'd look to put the shares in my wife's name as she has the lower tax rate (working part-time).
Does this sound like a reasonable structure? I've read some of the info around LTC's but I'm not seeing any benefit at this stage over doing it as individuals. That said, I don't know what I don't know and it may be there are long term benefits to setting up an LTC now? Would I be best to run this past an accountant?
Thanks for any advice in advance, I need to make a decision soon and I'd like to get started in the right way...
If anyone has any thoughts on a good floating rate to aim for currently, I'm all ears!
Cheers,
Steve
Comment