Property Investment Structures: Trusts vs Companies Explained
Christian Stevens, Mortgage Broker
Published January 31, 2025, 2:10 p.m ET
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🔑 Key Facts
- Property can be owned in a personal name, trust, or company — each with tax, risk and finance pros and cons.
- Trusts offer asset protection and income distribution flexibility but come with higher complexity.
- Companies provide legal separation and fixed tax rates but lose CGT discounts.
- Personal ownership is simple and tax-effective but carries more risk.
- Flint helps you choose and finance the right structure for your goals.
What Are Property Investment Structures?
The structure you use to own your investment property — personal, trust, or company — affects how you’re taxed, how much you can borrow, and how easily you can grow your portfolio. While many investors buy in their own name to start with, more strategic buyers consider trusts or companies for long-term benefits.
Let’s compare the three most common options.
1. Personal Ownership — Simple, Flexible, and Tax-Friendly
Buying in your own name is the easiest and most accessible approach. You’ll have access to a wider range of lenders, lower interest rates, and can claim property-related expenses and loan interest to offset rental income.
✅ Benefits:
- Easy setup and access to most loan products
- Eligible for negative gearing and CGT discounts
- Simple accounting and tax treatment
⚠️ Things to Consider:
- No asset protection if legal or financial trouble arises
- Income and capital gains taxed at your marginal rate
🎯 Best for:
First-time investors or borrowers with straightforward finances.
2. Trust Ownership — Flexible, Protected, and Tax-Conscious
With a family or discretionary trust, the property is owned by a legal entity on behalf of beneficiaries. This provides asset protection and flexibility in how income is distributed for tax minimisation.
✅ Benefits:
- Greater asset protection from creditors or legal action
- Distributes income across family members for tax savings
- Helps with estate and wealth planning
⚠️ Things to Consider:
- Higher setup and ongoing costs
- Fewer lenders and loan options available
- Negative gearing benefits can’t be claimed personally
🎯 Best for:
Long-term investors, families, or those seeking estate planning or asset protection.
3. Company Ownership — Strategic, Structured, and Scalable
A company structure (typically a Pty Ltd) creates legal and financial separation from your personal finances. Profits are taxed at the corporate tax rate, and the company owns the asset.
✅ Benefits:
- Flat tax rate (currently 25%)
- Limited personal liability and clean asset separation
- Keeps personal and business finances distinct
⚠️ Things to Consider:
- No access to 50% CGT discount
- More complexity, compliance and reporting obligations
- Smaller lender panel and higher rates in some cases
🎯 Best for:
Sophisticated or high-income investors, and business owners building investment portfolios.
📝 Summary Table — Comparing Ownership Structures
| Feature | Personal Name | Trust | Trust |
|---|---|---|---|
|
Tax Simplicity |
✅ Easy |
⚠️ Complex |
⚠️ Complex |
|
Negative Gearing |
✅ Allowed |
❌ Not applicable |
❌ Not applicable |
|
CGT Discount |
✅ Yes |
✅ Yes |
❌ No |
|
Asset Protection |
❌ None |
✅ Yes |
✅ Yes |
|
Lending Access |
✅ Broad |
⚠️ Limited |
⚠️ Limited |
📞 Want to Structure Your Property Investment the Right Way?
At Flint, we work with your accountant or adviser to:
- Help you choose the right loan and structure from day one
- Compare lending options across personal, trust and company ownership
- Align your finance strategy with your tax and growth goals
Chat with Flint today — and let’s invest smarter, from structure to strategy.
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