Prudentia Law has built a strong client base of property investors who have built their portfolios over time using sensible financial advice and our legal assistance. Our property and tax knowledge help investments get the leading-edge advice with their structures and their tax-efficiencies. This advice revolves around several different areas including:
Structure: Investors can utilise a variety of structures including trusts, companies, Look-Through Companies, Partnerships and individual names. Each structure has its different benefits and weaknesses, and it is important you get advice to help you choose the correct one. Let us assist with working hands on with you to make sure the structure you end up putting in place has the most considered tax-efficient, cost-efficient, and protected benefits for your specific circumstances
Debt: Property Investors will often be taking on debt to fund the purchase of their rental properties, and it is sensible to get proper legal advice on how the debt should be structured. For example, it is always most advantageous to ensure your Property Investments are leveraged as highly as possible for interest deductibility while your passive assets also used as security should have as minimal debt as possible. We can assist in giving you and your lender/bank guidance on identifying the appropriate borrowers, guarantors and mortgagors when structuring your property investments.
Tax: It is always sensible to consider what tax advantages you can achieve through property investment. These stem from:
- Making sure the ownership structure is correct for taking full effect of any tax losses that may be suffered as part of a negatively-geared portfolio;
- Ensuring the debt is structured so that all interest applicable to the investment is able to be deducted in the correct entity’s name;
- Identifying the allowable deductions on an ongoing basis to provide you with ongoing tax-effectiveness.
To this end, we encourage you to be in contact with us not only as you start out on your property investment strategy, but also on an ongoing basis where we can provide additional guidance when your accounts are prepared and when you are considering different options with your investing, from year to year.