Once the decision is made to invest and a property is chosen it is important to decide on the best structure for the purchase.

Structure refers to the entity that will legally own and be responsible for the property. The differences between structures or legal forms of ownership come down to questions about:

  1. Income and capital gain distribution
  2. Asset protection
  3. Flexibility
  4. Tax implications
  5. Estate Planning
  6. Set up costs

There are two main categories of structure:

  1. Personal Ownership which may be individual or joint – Joint owners can then be joint tenants or tenants in common.
  2. Separate Entities which may take the form of a company or a variety of trusts – either a unit or discretionary trust or an SMSF.