CASE STUDY – Vacant land purchase
Vacant Land Purchase – the clients: Mr A and Mrs A (not their real names!) run their own individually successful
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Peter runs a truck service company based near Caloundra, QLD. His company is quite successful and has been running for about 10 years. However, the lease on the current premises is due to expire next year and he doesn’t want to get stuck into another 5-year lease term. He is keen to buy a new business premises in the best structure possible. He can afford to purchase a site for $800,000.
We spoke to his accountant and worked out that by purchasing a new site in the name through his Family Trust, he can effectively pay off the loan and pay rent to himself for less monthly outgoings than his previous lease. His wife and children are trustees of the Trust and hence this adds a level of asset protection to Peter, meaning that he can control & receive income from assets without having them in his name.
For tax purposes, the taxable income was as low as possible, however we were able to add back lease payments, depreciation, Director’s Superann, and other expenses to make the loan service.
We organised a 30-year loan, lending up to 80% of the commercial property value, Interest only for 5 years, non-reviewable i.e. lender cannot recall the loan at any stage nor ask to view company’s financial performance).
After 5 years Peter may look at refinancing the loan again.
Peter runs a truck service company based near Caloundra, QLD. His company is quite successful and has been running for about 10 years. However, the lease on the current premises is due to expire next year and he doesn’t want to get stuck into another 5-year lease term. He is keen to buy a new business premises in the best structure possible. He can afford to purchase a site for $800,000.
We spoke to his accountant and worked out that by purchasing a new site in the name through his Family Trust, he can effectively pay off the loan and pay rent to himself for less monthly outgoings than his previous lease. His wife and children are trustees of the Trust and hence this adds a level of asset protection to Peter, meaning that he can control & receive income from assets without having them in his name.
For tax purposes, the taxable income was as low as possible, however we were able to add back lease payments, depreciation, Director’s Superann, and other expenses to make the loan service.
We organised a 30-year loan, lending up to 80% of the commercial property value, Interest only for 5 years, non-reviewable i.e. lender cannot recall the loan at any stage nor ask to view company’s financial performance).
After 5 years Peter may look at refinancing the loan again.
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Vacant Land Purchase – the clients: Mr A and Mrs A (not their real names!) run their own individually successful
Na Austrália, a compra de uma casa é um dos maiores passos financeiros que a maioria das pessoas dará em
En Australia, la compra de una vivienda es uno de los mayores pasos financieros que la mayoría de las personas
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