Purchasing property in your individual name is the simplest and easiest way to purchase property. For properties to ‘live in’, purchasing in your individual name almost always makes sense given the concessional tax treatment of the family home.
For investment purposes, most mum and dad property investors make purchases in their own names. This is likely because the tax system encourages purchases to be made individually (negative gearing works for individuals & capital gains concessions are available).
However, this structure offers little ‘asset protection’ if things go wrong. Lawyers usually strongly advise against purchasing in your own name because your assets aren’t well protected if things go wrong (if you’re sued for example).
It may be worth considering whether it makes sense to purchase in other entities. The considerations usually at play are:
In most cases, mum and dad investors who do not see the value in protecting their assets will purchase in their individual names. As they grow their portfolio, there may be tax benefits to purchasing in a trust – mainly minimising state based land taxes. Usually these tax benefits outweigh the administrative costs for those investors with deep investment portfolios.
For those that are in roles that are a little riskier, asset protection becomes more important. This encourages more sophisticated structures that better protect your hard-earned assets by separating them from you as an ‘individual’.