Investing in property - What legal structures should I consider for owning investment properties?
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Congratulations on finding the perfect property for your first investment or to expand your property portfolio! Before signing that contract with the real estate agent, take a moment to consider the following:
what are the tax implications of this purchase and options to structure the purchase to maximize tax efficiency. Having regards to the current market condition, consideration should be given to potential growth in property value and rental returns in the next couple of years.
what level of asset protection aligns with your investment strategy. This will help safeguard your assets in case of unforeseen circumstances,
what control and ownership best suits your situation. Different ownership structures, such as individual ownership, joint tenancy, discretionary trust, company ownership, or a combination, offer varying levels of control and benefits.
Buying property hastily via a discretionary trust with the expectation of tax reduction is a prevalent error that may lead to forfeiting tax advantages in the event of changing circumstances. Engaging in a discussion with your advisor about the points mentioned earlier can help position your property strategically right from the start.
Are you looking to delve deeper into this, then please reach out to Claudia Channon, cchannon@mhllegal.com.au, or call +61 73211 4988.
