There are 5 major ownership structures in which you can hold investment properties, and each one has its pro’s and con’s. In this first article we will be looking at Individual Ownership.
Individual ownership is one of the most common ways to own your investment property. By this we mean owning in your personal name 100% regardless of the level of debt you may have for the property.
This is the easiest way of owning your investment and, if the property is negatively geared will give you the most tax advantages. Of course, if the property is positively geared you may have additional tax to pay but you are also receiving the rent as passive income on top of your regular salary.
Individual ownership is best suited to individual salary & wage earners who have minimal risk in their everyday lives and first time investors who typically want to keep things simple.
Short and long term plans, lifestyle, tax advantages and capital protection all need to be taken into consideration when determining the best structure to own your investment property in. As always, remember to speak to us before you purchase to ensure your ownership structure is suited to your individual needs.
Rebecca Mackie, Partner, Paris Financial
5 Investment Property Ownership Structures Article Series