Unfortunately, when a person first starts out in property investment, they get caught up in the moment, and the flurry of excitement and anticipation that comes with property purchase. Let's be realistic - it is an exciting moment for any person, especially if it has been a long time coming. The last thing on their mind is seeing their accountant, and discussing the property purchase with them.

Hopefully, after reading this, you will get in touch with your property expert accountant and get them involved in the planning stages of your property purchase.

1. Equal joint owners (50%/50% share)
Ideal when both spouses are employed, and on similar tax brackets. All income and expenses are split 50/50 for tax purposes, regardless of who paid for it. This is the most common structure for those purchasing with their spouse. Where you do not seek advice from an accountant, the solicitors will generally recommend this default structure.

2. Unequal ownership (70%/30% share), (60%/40% share)
T his scenario is ideal when one spouse earns marginally more income than the other.

3. Unequal ownership (99%/1%)
This usually happens when the one spouse does not work, but still would like to be included on the title of the property. There is no difference from a tax perspective between this option and the next one (100% ownership)

4. 100% ownership for one spouse
This would be beneficial when one spouse earns the income in the family, and the other spouse has no intentions to work or return to work. Please note that the benefit will only be highest at the time when the property is negative geared.

5. Ownership with 2 or more investors
If it has not been formally set up in a proper formal structure such as a trust or a company , then the purchase of the property with more than 2 owners form a partnership. The income and expenses are split according to the number of owners involved.

6. Trust
Within trusts, there are several different types of trust setups available, including discretionary trusts, unit trusts (fixed and unfixed) and hybrid trusts. Set up correctly for the right investor, it can be a very powerful tool that provides asset protection and tax minimisation strategies. Although it is a little more complicated than the other previous 5 options, the benefits most often outweighs the costs, however, it is very important that you do seek personalised advice specific to your situation.

7. Self Managed Super Fund
This structure allows you to purchase property with funds that  you would not normally be able to access, which is sitting in  your super fund. Recent changes to the law has allowed super funds to borrow, but this is a very costly exercise to set up. The tax rate is 15%, so when the property becomes positive geared, you pay the lowest amount of tax possible across all the structures available. Buying a property in a self managed super fund is a great way to build the wealth required for your retirement. There are strict rules within this structure, so be sure to get proper advice.

8. Company
There is also the option to buy property in a company, but this is not recommended, for numerous reasons. There is no asset protection, and should the company experience hardship or liquidity issues, you run the risk of losing your property.

The above ownership structures are meant to be a guide only so please do not use this to structure your own affairs, without first consulting with an accountant.

Your future investment property goals need to be taken into account, and also the lifestyle choices of your family, so it is important that you analyse your situation as a whole before making a decision. Most investors have their properties across all the different structures, to hedge the risks.
We cannot stress how important it is that you review your overall strategy with your accountant.