Ownership Options

Ownership Options

Posted on August 1st, 2006 Huis-Huis No comments

It is important to consider the advantages and disadvantages of different ownership options.

Registering a property in your name or jointly with another person is the easiest and most common way of owning a property. This option has also become the cheapest way of transferring a property since the amendment of the tax laws in February 2003.

Other alternatives include purchasing a property in a company, close corporation or trust. The practice of buying the shares in the company to avoid transfer duty has been stopped by the 2003 tax amendments. These options still offer advantages in the form of security and estate planning, but the higher transfer duty and capital gains tax deter many buyers from using these entities.

The purchase or sale of a property via a legal entity can be complex and it is advisable to seek professional advice from an attorney, accountant or financial adviser.