One of the most frequent mistakes I see with property investors is selecting the wrong financial structure to hold their assets in. It is such an important decision but one that many property investors, especially first time property investors don’t pay enough attention too.
While there are many variations on financial structures there are 3 main types that people use:
1. Trusts
2. Companies
3. Superannuation
While not an “entity “as such, investing in your own name is one that also needs to be considered.
The importance of selecting the right entity has wide ranging implications. These include:
If one of these more complex structures is not suitable and you decide to invest in your own name, it is important that the percentage split between spouses is done correctly as this will have an impact on income tax and capital gains tax down the track.
If you need any help with this, please get in touch with the office and I would be happy to help.