Protect your assets

Most people, when they buy their first property, enthusiastically put it in their own name, thinking nothing of what they have just done. Since you are buying the property, it makes total sense to put it in your name. However, with few exceptions, putting a property into your own name is probably the worst structure you can use. There are many reasons for this. If someone should sue you on serious or frivolous grounds, all your assets could be at risk including the property you put in your name. It is much smarter to put your properties into an entity such as a company, trust or superfund giving you a measure of protection. Specifically which entity you should use will depend on your age, marital status, number of dependents, income level, asset base, amount of passive income, risk adversity and employment status. The wisest strategy is to see a competent tax accountant who can give you lucid advice tailored to your circumstances.

Usually putting a property into a structure will not eliminate tax obligations, but some structures are more tax effective than others depending on your circumstances. Again contact a competent tax accountant for advice.