A Name Is Just A Name…Or Is It?:

Did you know that you have many options when it comes to deciding the entity that should own your new property?

Most property buyers, even seasoned investors, default to simply buying the property in their own name, but this is not always the best and most financially savvy choice. The legally recognised owner of a residential property can be a personal name or two or more people; a company; a trust or a self-managed super fund (SMSF). The best option for you depends entirely on your individual circumstances and goals. There are plenty of factors that come into the ownership structure, including simplicity, asset protection, tax benefits, financing, estate planning, future wealth or business growth. When you look at it this way, it’s easy to see then how this decision can quickly become complicated. While it is possible to change the ownership structure at a later date, this can be costly and usually triggers payment of stamp duty and capital gains tax.
That’s why it is important to decide on the most suitable form of ownership upfront, and this will usually involve consultation with your accountant or financial advisor to determine the best name to buy in.

In summary

There are pros and cons to each ownership structure for residential properties and each has inherent complexities that affect its suitability. To determine the correct ownership structure and therefore the name that will appear on the title document of your next property, discuss your situation and goals with your accountant to ensure the best and most profitable outcome.