When purchasing property in South Australia, it's essential to understand the different ownership structures available. Here's a breakdown of the most common types:

Sole Ownership

• Definition: This is the simplest form of ownership. One person holds the entire title to the property.

• Benefits: Complete control over the property, no need to consult with others for decisions.

• Considerations: If you pass away, the property may be subject to probate, which can be a lengthy and costly process.

Joint Tenancy

• Definition: Two or more people own the property as a single unit. If one owner dies, their share automatically passes to the surviving owners.

• Benefits: No probate is required upon the death of an owner.

• Considerations: All joint tenants must agree on decisions regarding the property. If one tenant wants to sell, the others can force them to do so.

Tenancy in Common

• Definition: Two or more people own the property as individual shares. If one owner dies, their share passes to their heirs.

• Benefits: More flexibility than joint tenancy. Each owner can leave their share to whomever they choose.

• Considerations: Probate may be required upon the death of an owner.

Trust

• Definition: A legal arrangement where a trustee holds property on behalf of beneficiaries.

• Benefits: Can provide asset protection, estate planning, and tax benefits.

• Considerations: Can be complex to set up and manage.

Company Ownership (Pty Ltd)

• Definition: A company owns the property.

• Benefits: Limited liability for the owners, potential tax advantages.

• Considerations: Can be more expensive to set up and manage than other ownership structures.

Disclaimer: This information is for general knowledge only and does not constitute financial or investment advice. It is essential to consult with a qualified legal professional to obtain independent advice tailored to your specific circumstances and goals.

Choosing the right ownership structure depends on your individual circumstances and goals. It's advisable to consult with relevant advisors such as your financial planner, accountant and solicitors to determine the best option for your circumstances.