An important preliminary step in buying a property is deciding how you want to own the property. Download our Guide to Making Effective Business Contracts: Incorporating Terms & Conditions of Trade
If you neglect to consider the structure of your ownership of a property at an early stage you may find that it is too late to change later and encounter delays and/or additional costs. For example, if you have:
- Already obtained conditional finance approval from a Lender in say, you and your partner’s name, you will likely encounter additional delays in obtaining Unconditional Finance Approval if you later decide to purchase the property in your partner’s name only.
- Already found a property and there is interest from other prospective Buyers, delays caused by you making a new loan application in another name may result in you missing out on the property.
- Purchased property one way and later want to change it, this will result in additional Stamp Duty, legal and loan expenses.
Asset Protection & Tax Minimsation
Depending on your circumstances it may be preferable, for asset protection or tax minimization purposes, that you:
- own your property jointly (as joint tenants or tenants in common), or alternatively
- do not own the property at all, and that instead the property is purchased solely in the name of your partner, a Company, a Trust or even a Self Managed Super Fund.
You should obtain advice from a Lawyer experienced in Advanced Estate Planning and Asset Structuring in relation to the preferred manner for you to own a property before making any loan applications.
Call now and speak to one of our Property Lawyers to discuss Asset Structuring appropriate for your circumstances or download The Ultimate Conveyancing Guide for more information.
The Ultimate Conveyancing Guide
The Ultimate Conveyancing Guide is a comprehensive step-by-step guide to buying residential property in New South Wales.
The aim of this Guide is to assist buyers to more fully prepare themselves to buy residential property and understand the legal issues and procedures involved. Read more…