In Show 058 – 3 Top Things to Think About When Buying Property originally broadcast on Facebook Live on Monday 5 February 2018 we explore this interesting topic.
Show Notes
As we move into February we are starting Phase 9: Investing in property. As your company continues to grow investing your profits is going to become a paramount concern. This months we’re going to examine the best ways to use property as an investment vehicle.
To start things off here are the top 3 things you need to know before considering buying a property.
1. What entity is buying the property?
As we’ve discussed in previous episodes you can structure your business in a number of ways. The primary question is why are you buying this property? The answer to that question will dictate what entity you use. If you’re buying your primary residence you will likely do that under your individual name because of all the tax benefits you will accrue. If you’re buying an investment property, though, you might want to use the trust of it’s a positively geared property. There are many ways to do this but you have to get the right advice from your team.
2. The search engine is your friend
It may seem silly but checking the title on the property will make sure the person selling actually owns it. The potential of fraud is a very real one. Council searches and approval searches are really important to make sure that any changes made have actually been given the go-ahead. A Contaminated land search is hugely important too. You’re making a large investment so make sure you have all the information you need!
3. Encroachments
Many people think that encroachments won’t apply to them unless they live in the inner city. That’s not that case. When you do your plan search you should take special care to ensure that the boundaries of the property are in the right place. It doesn’t matter if you’re in the city or in the suburbs you don’t want to get a nasty surprise.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
