privately or company

Hi guys, i'm new to the forum so be gentle. I'm looking at buying a renovation property. Do the majority of people just buy in their own name or set up property investment company?

 

What's the timeframe on the project? Will you be making a business out of doing multiple of these at a time or is it just a once off?

 

hope to have it done in 2-3 months
Hopefully going to make a business out of it...i had actually retired but ive got bored and have been involved in property for a lot of years in uk so i thought i would do a few renos

 

The majority buy in their own names - but this shouldn't really be relevant for you unless you want to follow the masses.

Get some advice.

 

Yes I already spoke to an accountant today and he made very good sense. I'm more than likely going to set a business up. I was also curious tho about how people get around CGT doing it in their own names 1, if they're doing it as a 2nd income and 2, if they are doing it as a business

 

In my experience most first time investors will start out in their own names.

Renovating is hard. I have often seen big grand plans come grinding to a halt when reality kicks in. So sometimes you are better off to make life as simple as possible, pay tax if you make a fortune and then start engaging fancy pants bloke to stop it happening again.

It is just a personal view. But the other option is to pay somebody lots of money to set up entities, start a little bit, stop, barely break even, and then pay lots of money to maintain and shut down the fancy entities that never did anything.

When I retire I want to have done something with my life. I do not want to say "I charged a lot of fees to people who really never got any value from them".

Their is a rant if you ever saw one.

 

I have set up companies and trusts for people to renovate - and many have not done anything with these. I had another client who was operating though a company and successfully making a profit by buying, renovating and selling.

 

I total

Good rant mate!
I totally agree Ross, but I was in property as a Tradie, then property developing/building all my life in the uk so I'm pretty clued up, the only difference here to the principals are the legalities and the licences. Minefield.

 

Hard to see 2-3 months.

Takes 42 days each side to buy and sell. So ignoring doing any work its three months minimum unless access can be obtained. IMO its worth getting tax advice as many issues could impact profits you havent considered such as duty, land tax and even GST can apply to some.

One of the benefits of tax advice is finding how to minimise tax. Every dollar of tax saved is $1 of profit.