SearchWhat property ownership structure would you recommend?
Sharon asks:
(updated on Thursday, November 18th 2010)
Our Experts Answer:
My advice would be to plan for the predominate purpose. If the predominate purpose is as a residence for yourselves an LAQC is not appropriate as it should not own your home. This leaves a trust or personal ownership. Before deciding you need to budget your tax outcome by aportioning the costs and interest based on the proportion of rented area to private area. If this indicates a loss a simple partnership will allow this to be claimed 50/50. If the property is in trust no loss can be distributed to beneficiaries. If there is a rental profit the trust is probably best because it offers asset protection and the ability to distribute the net rental income as you see fit.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
Most Read
| Unity First Home Buyer special | 4.15 |
| SBS FirstHome Combo | 4.29 |
| ICBC | 4.49 |
| Kainga Ora | 4.59 |
| SBS Bank Special | 4.69 |
| AIA - Go Home Loans | 4.75 |
| China Construction Bank | 4.85 |
| Co-operative Bank - First Home Special | 4.89 |
| Kiwibank Special | 4.95 |
| TSB Special | 4.99 |
| Westpac Special | 4.99 |
| China Construction Bank | 4.95 |
| Kainga Ora | 4.95 |
| ICBC | 4.99 |
| SBS Bank Special | 5.29 |
| Co-operative Bank - First Home Special | 5.29 |
| Kiwibank Special | 5.39 |
| ASB Bank | 5.45 |
| Westpac Special | 5.45 |
| BNZ - Std | 5.45 |
| AIA - Go Home Loans | 5.45 |
| Co-operative Bank - Owner Occ | 5.45 |
| SBS Bank Special | 5.49 |
| BNZ - Std | 5.49 |
| Westpac Special | 5.49 |
| ASB Bank | 5.59 |
| AIA - Go Home Loans | 5.59 |
| ICBC | 5.65 |
| Kiwibank Special | 5.69 |
| Kainga Ora | 5.69 |
| Co-operative Bank - First Home Special | 5.89 |
| Co-operative Bank - Owner Occ | 5.99 |
| TSB Special | 5.99 |
| SBS FirstHome Combo | 3.29 |
| AIA - Back My Build | 3.34 |
| SBS Construction lending for FHB | 3.74 |
| CFML 321 Loans | 4.20 |
| Co-operative Bank - Standard | 5.34 |
| Co-operative Bank - Owner Occ | 5.34 |
| ICBC | 5.39 |
| Kainga Ora | 5.79 |
| Heartland Bank - Online | 5.80 |
| SBS Bank | 5.84 |
| Pepper Money Prime | 5.99 |
