There are many ownership options when you are buying an investment property and it is very important to get it right initially or it could cost you thousands later on in stamp duty and capital gains tax if you get it wrong. Therefore, it is important to speak to an experienced investment property advisor when you are getting started in property investment.
Some ownership options are listed below.
- Personal names – Joint Tenants or Tenants in Common?
- Trust Structure – Corporate Trustee or Individual?
- Company – Is this the right structure for tax purposes?
- SMSF – Is it worth while getting one set up?
- Hybrid Trusts – What does that ATO think of these at present?
When people don’t know how to get started in property investment, they quite often buy the investment property together (assuming husband and wife) generally 50/50. This is quite often the wrong thing to do as it can lead to a huge loss in tax deductions or a potential for extra capital gains tax to be paid.
The right structure for you will depend on you property investment strategy.
If you would like to know more about structures and getting the right Australian property investment advice, then please complete the form below and one of our experienced property investment advisors will call you with the answers.