Purchasing an Investment Property in your Personal Name vs Trust vs Company
- Feb 13
- 2 min read
Choosing the right ownership structure for your property investment is one of the most important decisions you will make. It affects how much tax you pay, how well your assets are protected, and how flexible you are as your portfolio grows.
Many investors buy their first property in their personal name because it feels simple. Others are told to use a trust or company without fully understanding why. Getting this wrong can be costly and difficult to unwind later.
Buying Property in Your Personal Name
This is the most common starting point for new investors.
Best suited for
First time investors
Lower income earners
One-property investment strategy
Benefits
Simple and low setup cost
Access to the 50 percent capital gains tax discount if it’s held for 12 months or longer
Easier finance approval with most lenders
Things to watch
All income is taxed at your personal marginal tax rate
No ability to split income with family members
Limited asset protection
Buying in your personal name can work well early on, but it often becomes inefficient as your income and portfolio grow.
Buying Property Through a Trust
Trusts are commonly used by investors focused on flexibility and long-term planning.
Best suited for
Family investors
Long term wealth builders
Investors wanting income distribution flexibility
Benefits
Ability to distribute income to family members in lower tax brackets
Strong asset protection when structured correctly
Access to the 50 percent capital gains tax discount if it’s held for 12 months or longer
Things to watch
Higher setup and ongoing compliance costs
Losses are trapped in the trust and cannot be distributed personally
More complex lending requirements
Trusts can be powerful, but they must be set up correctly from day one to avoid tax and compliance issues later.
Buying Property Through a Company
Companies are less common for residential property but can suit specific strategies.
Best suited for
High income earners
Investors focused on cash flow
Commercial property investors
Benefits
Flat tax rate of 25% or 30% depending on circumstances
Strong asset protection
Easier to retain profits for reinvestment
Things to watch
No access to the 50% capital gains tax discount
Double taxation risk when profits are paid out
Less flexibility to use company funds for personal use
Companies are often used as part of a broader structure rather than as a standalone solution.
Common Mistakes Property Investors Make
Choosing a structure based on advice from friends or social media
Not considering long term goals before purchasing
Ignoring land tax and state-based implications
Trying to change structures after buying which can trigger stamp duty and tax
Your structure should support where you are going, not just where you are now.
How Rise Accountants Helps Property Investors
At Rise Accountants, we help property investors choose structures that align with their income, risk profile and long-term plans.
We look at:
Your current and future income
Your borrowing capacity
Asset protection needs
Tax efficiency over time
There is no one size fits all answer. The right structure depends on your goals.
Thinking about investing in property or reviewing your current structure?