I occasionally get ribbed by my ‘laid back’ friends because my profession rewards pedantic people.
And it’s true.
Good conveyancers don’t hold a ‘she’ll be right’ attitude because we know when detail gets brushed over, expensive time bombs can start ticking in our clients’ portfolios.
So this is why I enjoyed a recent article by Shannon Davis, entitled, A name is just a name … or is it? Your options when buying a property.
If you’re about to buy real estate, just a few minutes pondering these points could guide you to some important, money-saving conversations with your trusted advisors.
The expensive words in real estate
The main thrust of Shannon’s article from Michael Yardney’s Property Update publication is that when you decide to buy real estate, what you ‘call yourself’ really matters.
Most property buyers, even seasoned investors, default to simply buying the property in their own name, but this is not always the best and most financially savvy choice, says Shannon.
There are pros and cons for choosing between buying a property in your name, in joint names, as a company, as a trust or as a SMSF (self-managed super fund).
Each of these ownership models, or structures, have certain strengths ranging from simplicity and access to negative gearing potential, through to estate planning.
Your ‘pedantic’ conveyancer is a godsend
My first concern for anyone buying real estate, whether it’s your first time or your tenth time, is to get good advice from your accountant and/or financial advisor so you can be clear on your most important goal and needs for the investment.
Armed with this clarity, you can then advise your conveyancer on the EXACT purchasing entity you are planning to use so that we can operate accordingly, on your behalf.
Unfortunately, we have witnessed first hand over the years that another lot of stamp duty is one of the major consequences of buying a property in an incorrect entity and when having to then change entities down the track.
There is much to be said for Aussies being laid back and relaxed and the surest way to achieve such tranquility is to make sure you have trusted advisers and a team of pedantic conveyancers by your side.