WHAT NAME COULD I BUY AN INVESTMENT PROPERTY IN?

Investing with a co-owner 

You could share ownership with a trusted partner, friend or family member.
 

Some general advantages:

• Could afford a higher value property, or multiple investment properties 
• Lower costs per individual, as they’re shared between investors
• Two minds can be better than one  
• Option to have multiple loan accounts under one loan, each with their own offset.
  
  

Some general considerations:

• Disagreements, relationship breakdown
• Less share of the income/capital growth
• Both parties have access to the joint loan accounts and any linked offsets 
• Change of plan or an unforeseen event: you can’t sell half a property, so you may need to sell or have one party buy the other out
• If your investment includes a gearing strategy, speak with your tax adviser
• Independent legal advice can be a smart idea for both parties.
   

Owning investment property as a group 

Westpac syndicate lending offers 2-10 property investors a way to split the cost of buying and co-owning a property, while retaining individual control of their finances. Talk with your lender, tax adviser and legal agent about the added complexities of structuring ownership this way. 

Borrower only option 

• All parties on the loan are joint borrowers. 
• All parties are responsible for the entire debt. 
• The loan can be split to each borrower, as separate loan accounts.

Borrower & guarantor option 

• All parties are borrowers and can choose individual loans. 
• They’re guarantors on all loans against the property. 
• All parties must service the debt of their individual loan. 
   

Owning property within a trust

A family trust is a legal structure allowing one or more family members to manage property for another family member’s benefit. Due to their complexity, you should, of course, look at getting legal and tax advice.
 

Some general advantages:

• Potential to protect family assets from bankruptcy
• Ownership isn't tied to an individual and can be passed onto other family members
• Possible flexibility when sharing income and capital gains between family members.

Some general considerations:

• Up front and ongoing tax adviser and solicitor fees 
• Ongoing personal admin
• Can only distribute profits, not losses 
• You'll need a trust deed to set one up.

Owning property in a company name   

Weigh up the tax pros and cons with your tax adviser. Your local Westpac business Property Specialist can walk you through your site finance and business growth options.

Buying property when you're self-employed   

• If you're buying property in your personal name, you can apply for the same Westpac residential investment home loans, offers and rates as salary-earners.

• And if you qualify for our Fast Track assessment, all you need to provide is your two most recent personal ATO Notices of Assessment.

Investing through a self-managed super fund

There are strict rules, costs and risks involved with investing in residential property through a self-managed super fund. For example, assets in super funds can’t be used for personal use. Weigh up the pros and cons with your tax adviser.