Purchasing property under company.. Loan??

I'm looking at purchasing an investment property under ABN Company (GST Registered) of which i am the sole director.

The company has been registered for 2 years, but i haven't done any trading/business/transactions under it.

I've spoken to my broker who has told me that I won't be able to buy the property under my company name, and that i will have to go personal.

I have a PPOR and approx 400-500K equity in it, + 300K savings + 250K gross wages on payslip (from a different company).

Does anyone have any advice or solutions for me? I don't want to buy it under personal name because of tax/liability purposes.

 

Who are the shareholders of the company?

 

You 'won't be able to borrow under a company' but that is probably sloppy wording. Did you mean the company cannot borrow?

We do company loans weekly

 

Me and only me

Yes sloppy. I mean i want to purchase the property under my company entity. I want to borrow using my personal assets (PPOR + savings + income from payslip wages from the company i work for).

 

The company can borrow. Whats the issue?
Loan Tip: Can a Brand New Company Borrow? Loan Tip: Can a Brand New Company Borrow?

 

Hi Terry
Sorry i don't think im understanding the issue so maybe im not explaining it correctly.

I have never used the company for any sort of business or trading. So for the past 2 years, i've submitted NIL on bas and tax returns, and as such i dont have any financial statements to show any sort of income.

As such i was told by the broker that its not possible to get a loan in the name of the company

 

That is not true - the link explains that. In fact it would be a hindrance if the company was trading.

 

Thanks for the feedback Terry

I know you're occupied with your existing client base, do you have any recommendations for a broker who could assist me?

 

my company Loan Structuring Pty Ltd is still accepting clients, i am just not taking on any law or tax only clients anymore.

 

Related question and an opportunity for an MB to take up: I have borrowed in a similar structure under another company created just for buying property and both these companies sitting under a trust. My wife and I have then stood as a guarantor for the loan. Now if I apply for a mortgage for my personal IP or PPR, does this guarantor position reduce my serviceability or anything else?

 

It could reduce serviceability, it will depend on the situation and the lender involved.

 

Note sure why the entity would be reg for GST if its not conducting a enterprise. Its a red flag to lenders perhaps. Easily addressed. Typically accountants letter anbd cancellation of GST role (unless buying commercial prop). Some lenders will defer loans to a company if the individial has no assets. Its a reflection more that the individual is a poor guarantor than anything else.

The issue as to why a company as property owner is being considered may need some tax / legal advice. Many people dont understand what legal liability is. If you think its a tenant suing then thats incorrect. Property insurance is a typical solution to that worry.