What name could I buy an investment property in?

Investing with someone else

You can buy with a co-owner, like a partner, friend or family member.

General benefits:

• Costs are shared, so you each pay less 

• You can buy bigger or more investment properties

• Option to set up multiple loan/offset accounts

• Offers two perspectives.

Some general drawbacks:

• Split rental income and capital growth 

• Might disagree or have a falling out

• You can't sell half: one buys the other out or you both sell up

• You'll both have access to the loan/offset accounts 

• Talk with your tax adviser/s if you have a gearing strategy

• It's wise for both of you to get independent legal advice.
   

Investing as a group

With Bank of Melbourne group lending, 2 to 9 people can buy property together. It can be a bit complex, so chat with your lender, tax advisor and legal agent to understand your responsibilities. It's also a good idea to get independent tax and legal advice.

• Everyone’s responsible for the entire home loan
• Everyone’s a joint borrower
  
  

Investing within a family trust

This legal structure lets family members manage a property for the benefit of other family members. It's a bit complex, so it's smart to get independent advice from your team of legal and tax experts.

General benefits:

• Can safeguard assets from bankruptcy

• Property can be shared and passed onto other family members

• Capital gains and rental income could be shared.

Some general drawbacks:

• Ongoing costs for legal and tax guidance

• Can distribute profits but not losses

• A fair bit of admin

• You’ll need a trust deed
   

As a company

Your local business Property Specialist help you plan your business growth. You should also talk to your tax adviser about potential tax benefits and obligations.

> Owning property through your business
 

Self-employed

As long as ownership of the residential property is under one or more individual names – as opposed to a business name – you’ll get the same loan features and interest rate as salary-earners. You could also fast-track your assessment.

> Investment home loans for business owners
 

Self-managed super fund

Buying property through super comes with risks, and is tightly regulated. For example, the property can’t be for personal use. Review the pros and cons with your tax adviser.