Apply online now »

investors

Ownership structure

 

Establising the correct ownership structure is a critical element of successful property investment as is the correct finance structure.  We have seen many people who made a wise investment with their property purchase but did not maximise the opportunity by failing to establish the most effective ownership or finance structure for their circumstances.

 
Ownership structure is a specialised area and our golden rule is always seek professional advice from an accountant or solicitor for the most effective structure for you.  There are no right answers around structure, it is different for different people who each have their own circumstances.  We have outlined the most common ownership structures below, but please take the time to consult a professional for advice on this aspect of property investment at the outset.
 

Partnerships

Advantages are they are easy and cost effective to set up, downside is partners are jointly and severally liable for any debt incurred in the partnership by the other partner.

Sole Trader

Advantages are it is easy and cost effective to set up, downside is there is unlimited liability on any losses made.
 

Ordinary Company

Advantages are your liability is limited and you are taxed at the company tax rate.  Downside is the cost and increased level of administration.

Trading Trust

Advantages are income can be distributed to beneficiaries and assets are protected from personal creditors.  The downside is you cannot distribute losses to beneficiaries.
 
 
 

Keep up with the mortgage goss

Read the latest news or Subscribe to our newsletter
   
AIA soveriegn asteron nib bnz onepath resimac westpac anz nzcu liberty basecorp dbr partnerslife asb fidelity