Buying Property Is Not Just About What You Buy, It’s About How You Own It
How to choose the right structure for your property goals
When people think about buying property, most of the focus goes straight to the asset itself. The suburb, the price, the potential growth, the rental return. All important. But there is another decision that can have just as much impact on your long-term outcome, and it is often overlooked until it is too late.
That decision is how you hold the property.
In a recent conversation on The Property Frontline, I sat down with Jane Purnell, Director at Holsworth Partners, to unpack why ownership structure needs to be considered right at the planning stage, not after contracts are signed.
Jane is both a financial adviser and an accountant, and her perspective is a practical one. Property decisions do not sit in isolation. They affect tax, risk, cash flow, retirement outcomes, estate planning, and flexibility over decades.
The Big Mistake Buyers Make Early On
One of the biggest issues Jane sees is that buyers rush into a purchase without thinking about the bigger picture. The market feels hot, competition is intense, and people feel pressure to act quickly.
That pressure often leads to a property being bought first, with the structure worked out later. The problem is that fixing the structure years down the track can be extremely expensive, if it is even possible at all without triggering tax, stamp duty, or legal issues.
As Jane put it, you often do not realise you made the wrong decision until ten years later, when the cost of correcting it can be hundreds of thousands of dollars.
The Main Ownership Structures Buyers Use
There are several common ways Australians own property, and each comes with different implications.
Owning in your personal name
This is the simplest structure and often suits a family home. It is inexpensive to set up and easy to manage. The downside is limited asset protection, and if the property later becomes an investment, all income is taxed at your marginal tax rate.
Joint ownership
This can be with a spouse, partner, friend, or family member. It works well in some situations, but requires clarity around ownership percentages, control, and exit strategies.
Trusts
Discretionary trusts, often called family trusts, offer flexibility. Income can be distributed among beneficiaries, and there is stronger asset protection. The trade-off is higher setup and ongoing costs, more complex lending, and potential land tax implications depending on the state.
Unit trusts are often used where multiple investors are involved, such as family members or business partners. Each person holds defined units, similar to shares. These structures need very clear documentation and strong legal advice.
Companies
Companies can be effective for developments or short-term property projects where profits are taxed at a flat company rate. However, companies do not receive the 50 percent capital gains tax discount, and money taken out for personal use can attract additional tax.
Self-managed super funds (SMSFs)
SMSFs can own property as part of a long-term retirement strategy. Tax rates are lower in super, and potentially zero in pension phase. However, the rules are strict. Borrowing, related party use, and compliance all need careful management. This structure is not suitable for everyone and should only be used with specialist advice.
Your Goals Should Drive the Structure
A key point Jane made is that there is no single structure that works for everyone.
If you are buying a home to live in, owning it personally often makes sense. If you are building a portfolio, a trust or combination of structures may be more appropriate. If retirement income is the goal, superannuation structures might play a role.
The mistake is copying what someone else has done. What worked for a friend, a sibling, or something you saw on social media may be completely wrong for your income, risk profile, family situation, or long-term plans.
Structure should follow strategy, not the other way around.
Building a Portfolio Often Requires More Than One Structure
For buyers aiming to build a high-performing portfolio, Jane’s advice was clear. It is rarely a one-structure solution.
You might start with a discretionary trust for flexibility and asset protection. Later, you may use a company or unit trust for a development or joint venture. Over time, you might hold long-term income-producing assets in super. In some cases, holding a property in your own name for a shorter-term strategy can still make sense.
What matters is that the structures evolve as your goals change. What works for your first property is unlikely to be ideal for your fifth.
Why This Needs to Be Done Before You Buy
One of the most important themes in our discussion was the need to slow down, even in a fast-moving market.
Yes, good properties sell quickly. But rushing without a clear strategy often leads to buying something that looks good today but creates problems later. The right preparation does not need to take months. It does need focused thinking and the right advice.
Spending money on advice upfront can feel uncomfortable, but as Jane explained, fixing mistakes later almost always costs far more.
The Right Professionals to Involve Early
Getting this right is not a solo exercise.
- Accountants help assess tax implications and compliance.
- Financial advisers ensure the property strategy aligns with cash flow, risk, and long-term wealth goals.
- Lawyers assist with estate planning, control, and asset protection.
- A buyers agent ensures the property itself fits the strategy, not just the market hype.
When these professionals work together from the start, buyers are far more likely to end up with a structure and property that supports them for decades.
A Final Thought
Markets will always move. Media noise will always exist. Pressure to act quickly will come and go.
The buyers who do best are the ones who control the process, rather than letting the market control them. Taking the time to think through ownership structure before you buy is one of the most powerful steps you can take to protect your future.
If you would like help thinking through the right structure and property strategy for your situation, you can contact Jane or myself via the details below.
Author: Debra Beck-Mewing
Debra Beck-Mewing is the Editor of Property Portfolio Magazine and CEO of The Property Frontline. With over 20 years of experience buying property across Australia, Debra is a skilled property strategist and buyers agent known for uncovering tailored opportunities — from family homes to multi-use investments.
She has deep expertise in advanced strategies including renovations, granny flats, sub-division, and development. A Qualified Property Investment Advisor (QPIA®), licensed real estate agent, and holder of a Bachelor of Commerce and Master of Business, Debra combines strategic insight with hands-on experience.
Debra is the creator of the Property Smart Track System™ – a professional property buying system that enables buyers to select, assess and buy property independently in today’s market. She also leads Buy Like A Genius™, a premium end-to-end buyers’ agency service for busy professionals seeking expert property acquisition without the stress.
As a passionate advocate for greater transparency in the property and wealth industries, Debra is a sought-after speaker, author, podcast host, and participates on numerous committees including the Property Owners’ Association.
