Ownership Structure And Ownership Structures

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Ownership Structure Besides deciding whether to purchase a new or established property, buyers also need to decide on the ownership structure of their property. As we are all unique individuals, there are different ownership structures that can be beneficial for different people. The structure you choose will be dependent on your own individual circumstances. The most common ownership structures include the following: Individual Ownership, as the name implies, means that the property is owned by a single person. With this ownership structure, proper estate planning is essential and a will needs to be drawn up with clear instructions on asset distribution to avoid intestacy rules, which can have a devastating effect for surviving family members and loved ones. From an investment point of view, the owner will reap all the tax benefits; this is especially useful for high-income earners to lower their taxes through negative gearing when purchasing an investment property. However, you must consider that the single owner will also be subjected to higher capital gains tax if the investment property is sold while earning that high income. Joint Tenants simply means that you’re married or in a de-facto relationship with the person with whom you are buying the property. When you purchase in this structure, if one of the married couple passes away, the other half of the property would automatically be transferred to the surviving partner. This is the most common ownership structure
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