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Should You Buy Property in a Trust, a Company, or Your Own Name?

 

1st August, 2025

 

Investing in property is a popular way to build wealth in Australia. However, how you structure the purchase can significantly affect tax, liability, and flexibility.

If you’re considering buying in a trust in NSW, check out our detailed blog “Buying Property in a Trust in NSW”. It outlines legal steps, stamp duty rules, and how conveyancing works. Meanwhile, this blog compares trust, company, and personal ownership so you can make an informed choice.

Buying in Your Own Name

Purchasing in your personal name is simple and direct. You hold both legal and beneficial ownership.

Pros

  • Very straightforward to set up.
  • Individuals may be eligible for a 50% capital gains tax discount if the property is held for more than 12 months and it is not their main residence.
  • Rental losses can be offset against other income via negative gearing.

Cons

  • Personal assets may be exposed to creditors.
  • Property forms part of your estate and may require probate upon death.

Personal ownership suits those who value clarity and ease.

Buying Through a Trust

A trust, often a family trust or discretionary trust, lets a trustee hold property on behalf of beneficiaries. It can offer asset protection and flexibility for tax planning.

Pros

  • Trust assets often stay protected from beneficiaries’ personal creditors.
  • Income distributions may be allocated to lower‑tax beneficiaries.
  • Trust assets usually avoid probate.

Cons

  • Trusts cost more to set up and maintain.
  • Losses cannot flow through to beneficiaries.
  • CGT discounts may not apply as they do to individuals.

In NSW, stamp duty applies when property is transferred or trust declared. Certain trust declarations may reduce duty to a small fixed amount.

Buying Through a Company

A company is a separate legal entity. In NSW, a registered private company (Pty Ltd) can buy property in its own name.

Pros

  • It offers limited liability, protecting personal assets.
  • Eligible companies pay 25% tax, or 30% if not a base-rate entity.
  • Ownership changes through share sales, rather than property transfers.

Cons

  • Companies do not get the 50% CGT discount.
  • Negative gearing does not apply.
  • Compliance and ASIC fees add ongoing cost.

Companies are also commonly used as corporate trustees for trusts, meaning the company acts as the legal owner and manager of the trust property instead of an individual. This offers benefits such as limited liability for individuals involved and ensures continuity in managing the trust’s assets.

What to Consider When Choosing

Start by reflecting on your long-term objectives. If ease of ownership and straightforward tax treatment are priorities, purchasing in your own name might be suitable. On the other hand, if asset protection or flexible income distribution is important, using a trust or company structure could be advantageous. Additionally, it’s essential to consider NSW stamp duty implications, estate planning requirements, and ongoing legal compliance associated with each option.

Disclaimer: This blog is for general information only and does not constitute legal, financial, or tax advice. You should always consult a qualified accountant or financial advisor before making property investment decisions.

How We Can Help

At Bangalow Conveyancing, we assist clients with property purchases across all ownership structures. Whether you’re buying in your personal name, via a trust, or under a company, our expert team handles the conveyancing process smoothly. We manage title transfers, NSW stamp duty lodgement, and all other legal documentation involved.

Contact us today to discuss how we can guide you through your property investment journey with confidence.