Which structure you use to purchase commercial property

Discussion in 'Commercial Property' started by Kickstart, 20th Oct, 2018.

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  1. Kickstart

    Kickstart Active Member

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    Hello everyone newbie to commercial investment.just wonder which structure is the best to purchase commercial property?
    Trust,company or individual?Pros and Cons?
    Also,will lender willing to do lease doc if the property is being purchased under trust?
    Thanks in advance
     
    Kickstart, 20th Oct, 2018
    #1
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Highly circumstantial but a good mix between both but that doesn't mean it right.

    If you have a servicing issue and it has been signed off from a tax and asset protection perspective then company/trust structure is good as couple of lenders don't take the debt into servicing provided the entity is able to meet its financial obligations.

    Lease doc is available via a trust - its not the cheapest product but we are using a lot these days due to servicing issues. Max LVR is 70%.

    There are lo doc options as well.
     
    Shahin_Afarin, 20th Oct, 2018
    #2
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Which medicine is best?

    It all depends.

    Risk is higher so you would want to consider a company to own. But this may or may not be as trustee.

    Then consider structure of the structure.

    Best to get specific legal advice from a lawyer
     
    Terry_w, 20th Oct, 2018
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  4. Property Guts

    Property Guts Well-Known Member

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    pty ltd
    same as i would if i start any business
     
    Property Guts, 22nd Oct, 2018
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  5. money

    money Well-Known Member

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    Do you mean a Pty Ltd as trustee for a Trust? Or why do you say just a company to own it?
     
    money, 9th Nov, 2018
    #5