First CIP - Industrial Warehouse

Hi all

re: Ownership Structure

I am looking at purchasing my first commercial investment property - It is a industrial warehouse facility.

I am wanting to purchasing this on a 50/50 ownership basis with my employer (Company A). Our company would then move into this space as an owner occupied space.

The company has 2 directors + 1 employee (myself). I also have a separate company registered under my name (Company B)

What would be the best ownership structure? In consideration of ownership, access to loan, protection, tax benefits etc

Potentional options:
1. 50% owned by company A, 50% owned by company B
2. Create a separate company, with 50% ownership of the company by me, 25% Director A 25% Director B
3. Trust structure (50% benefit me, 50% company A or 50% benefit me, 25% Director A, 25% Director B)

 

Who owns company A?

 

Company A = Directior A + Director B
Company B = Me

I am an employee of Company A

 

Unless you have already exhausted your land tax threshold or are in a high risk occupation, purchase in your own name.

Trusts in NSW don't get a land tax threshold, companies don't get CGT relief. There are other reasons to buy with a company or trust but I'll leave that to the gurus.

 

Are you related to director A and B?

Think of the risks here. If you don't own or part own the business, if something goes wrong with the business you lose both your job and your tenant.