Understanding Home Ownership Structures

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.