Have I set up the right ownership structures

Working out how to structure your investment property purchase is a critical consideration that must be determined before you buy (it’s too expensive to change ownership structures later on).

Ownership structures are just part of the strategic property plan that all investors should have before they even start looking for a property.

The right ownership structure will help you to minimise your tax, build your wealth and manage your risk.

Some of the commonly used investment ownership structures include:

Private ownership: where you own the property in your own name, either as an individual or jointly with another person.

Trust ownership: Here a trust (controlled by a trustee) is the legal owner of the property and holding the property for the benefit of other people (the beneficiaries).

Company ownership: A company is a separate legal entity. While owning a property in a company structure does not suit everybody, for some lower tax rates of a company are an advantage.

SMSF ownership: For many Australians owning a property in their self-managed superannuation fund (SMSF) is a text effective way of building a nest egg for the future, but this requires specific financial planning advice.

Here are some questions you should ask yourself when deciding on what type of structure to use.

How change in the near future?

It is important to note that different ownership structures will suit different people and their different circumstances, so it's important to get the right advice

RealRenta has all the tools that a property manager has but for less than ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property

RealRenta also has a free vision, so why not check it out

Jason Gwerder
Friday, 3 June 2022

Join our mailing list Receive Free Property Tips and news

Now Partnered With


Contact Us

1300 11 RENT (7368)