Choosing the right ownership model can shape your financial future
When buying property in Australia, how you choose to own it isn’t just a legal formality — it affects your control, tax obligations, estate planning, and long-term wealth strategy. Here’s a clear breakdown of the most common ownership structures Australians use.
Sole Ownership
- Full control over decisions, refinancing, and selling
- Simplified tax reporting
- Suitable for individuals with strong borrowing capacity
- Risk: full liability and no shared fallback
Joint Tenants
- If one owner passes away, their share automatically transfers to the other(s)
- Common for married couples or de facto partners
- Ownership is split evenly — no unequal shares allowed
- Estate planning is simplified but less flexible
Tenants in Common
- Shares can be equal or unequal (e.g. 70/30)
- Each owner can sell or will their share independently
- Ideal for investment partners or blended families
- Requires clear agreements to avoid disputes
Company Ownership
- Offers asset protection and tax flexibility
- Profits and losses are handled through company tax returns
- Suitable for commercial investors or developers
- Setup and compliance costs are higher
Trust Ownership
- Common in family trusts, discretionary trusts, or SMSFs
- Offers asset protection and estate planning benefits
- Income can be distributed strategically
- Requires legal setup and ongoing management
Which Structure Is Right for You?
- Personal residence? Sole or joint ownership may be simplest
- Investment property? Consider tenants in common, company, or trust
- Estate planning or asset protection? Trust structures offer flexibility
Ready to take the next step? Reach out to ROVO Finance for expert guidance tailored to your journey — whether you’re buying your first home or refining your investment strategy.
