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
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Jason Gwerder
Friday, 3 June 2022
