08 Sep The Importance of Having a Structure in Place When You Are Developing Property | #014
Structures are, in simpler words, the name that you buy a property in. Whether it’s through a trust or a company, that entity is considered as the owner of that property.
Some developers purchase development sites in their personal name. Nothing legally wrong with that, of course but you could be exposed to higher tax rates and risk.
I invited once again legendary property developer Bob Andersen to my show. Bob’s 38 years in property development including 15 years in property education makes him the right person to shed light on this topic.
We cover the 3 main benefits of having structures in place, the huge risk you are exposed to in terms of taxes and asset protection, when you put a property in your personal name, and the different types of structures you can use.
Curious about using structures for your next development project? Tune in now!
- Introduction [0:00]
- Some legal disclaimer [2:09]
- What are Structures and Entities? [2:49]
- Reasons why you need structures [4:01]
- Tax minimisation [4:08]
- Asset protection [4:45]
- Succession planning [5:28]
- The purpose of intention when it comes to property development [5:56]
- Deciding factors that affect your intentions [7:11]
- What happens when you change your mind about your initial intention? [8:44]
- Bob explains the intention tied to commercial development [10:58]
- The value of being clear with your intentions from the start [14:52]
- Who are the ideal people to give you the best advice on structures? [15:47]
- Types of structures [18:23]
- Why we discourage naming development sites in your personal name [20:59]
- What to do if you bought a property in your name and you’d like to develop it instead? [22:19]
- How do you value risk? [24:35]
Bob Andersen is the founder of Property Mastermind; he is a member of a select group of Australian property developers who have been involved in over $1 billion in successful development projects over the last three decades. Bob’s success in property development has become life-changing, and he wants to share his knowledge and experience with everyone who is willing to learn the secrets of property development. Property Mastermind exists because it gives him great satisfaction to see students get massive change in their finances and lifestyle.
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It has been a pleasure! Looking forward to seeing you in the future episodes!