Ep 355: Property ownership in personal names - factors to consider

May 6, 2025

Explore the ins and outs of property ownership through personal names. Discover three key options: sole ownership, joint ownership, and tenants-in-common, each with unique benefits. Learn how to maximize negative gearing and understand the implications for tax, capital gains, and estate planning. Stuart discusses strategies for protecting assets and optimizing cash flow, particularly for families. Don't miss tips on structuring ownership effectively from the outset to avoid costly changes later.

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INSIGHT

Ownership Choice Shapes Long-Term Outcomes

Choosing sole, joint or tenants-in-common affects tax, estate and control outcomes significantly.
Decide ownership at purchase since changing later usually triggers stamp duty or CGT.

ADVICE

Use Sole Ownership To Maximise Deductions

Put property solely in the higher-income spouse to maximise negative gearing benefits.
Use sole ownership to exploit individual land tax thresholds where states allow it.

INSIGHT

Joint Ownership Eases Estate And CGT Impact

Joint ownership offers automatic transfer to a surviving owner and simplifies estate outcomes.
Splitting ownership spreads capital gains across taxpayers but usually yields modest percentage savings.

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In this episode, Stuart breaks down the key factors to consider when owning property in your personal name. While it is the most common structure among investors, there are important decisions to make that can have a lasting impact on your tax outcomes, cash flow, and asset protection.

He outlines the three main ownership options: sole ownership, joint ownership, and tenants-in-common. Each structure comes with its own benefits. For example, sole ownership may maximise negative gearing if one spouse has a higher income, while a tenants-in-common split can be tailored for tax efficiency and cash management.

Stuart also explains how ownership affects land tax thresholds, capital gains tax, and estate planning. He shares strategies using offset accounts to optimise loan structure, particularly for couples with uneven incomes.

When it comes to your family home, Stuart covers when asset protection or future investment use might influence how it should be owned.

The key takeaway is that changing ownership after purchase is usually expensive and triggers stamp duty or CGT, so it is essential to get it right from the start.

If you are planning to buy property soon, this episode will help you choose the best ownership structure for both current and future circumstances.

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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.