buying a share in property platform

utmbuilder

I came across this, http://moneycrowd.ie/wordpress_c/ I think its a great idea, does a company like this have to be regulated with anyone like the central bank or psr?

how would tax work, when getting dividends.

The_Conductor

utmbuilder wrote: »

I came across this, http://moneycrowd.ie/wordpress_c/ I think its a great idea, does a company like this have to be regulated with anyone like the central bank or psr?

how would tax work, when getting dividends.

Its on dodgy grounds from a regulatory perspective- there are REITs and other options- which are properly regulated and subject to appropriate oversights- this proposition has absolutely no transparency whatsoever. The massive part of all of this- is no information on charges that would be applied to the 'company' for managing its assets (property holdings). Its entirely possible someone could withdraw 10% of the assets and/or income of this company annually- arguing its entirely justifiable running costs- and you might end up with marginal asset growth (there is no mention of income projections etc).

As a prospectus- the lack of basic information on the website is deafening in its omission.

As the old addage goes- caveat emptor.

davindub

utmbuilder wrote: »

I came across this, http://moneycrowd.ie/wordpress_c/ I think its a great idea, does a company like this have to be regulated with anyone like the central bank or psr?

how would tax work, when getting dividends.

Company will be regulated by articles of association & Company law.

25% Corp tax on tax adjusted profits before distributions.

Will be more than likely a close company which means investment income not distributed will be further taxed at 20%

Will have to produce annual acounts but not audited.

Tbh one company per property is not efficient. Someone will be applying a management charge for the property, accountants fees, company secretrial fees.

REITS are more tax efficient for investors. There is no corporate tax as the majority of income must be distributed to its shareholders who pay income tax. So that's a tax saving of 25% * your Inc tax rate. Also there is a market(stock exchange) for reit shares so you can exit much easier than with a private company.

Have a look at hibernia and the 4/5 irish reits. But be aware the growth is likely to be a lot less than our the last 2 years going forWard. The founders have divested their holdings which gives an idea of expected capital gains of the share price.

Lumen

Will any new venture like this I would spend a few minutes poking around on whois, LinkedIn, and solocheck to establish the credentials of those involved.

the_syco

I'm going to view this as a "buy a house that I can rent out" scheme.