I am planning on buying an investment property to use ‘negative gearing’ to reduce my income. I am on a high income and my wife is off work having children. Should I buy the property solely in my name?
Hi Warren, This is always a tricky question. Most people automatically think that buying in the high income earners name is the best option. It is for negative gearing but may not be the best when other factors such as land tax in the state you are buying in, future CGT issues and how long your spouse may be not income earning. Also, is your spouse comfortable with you investing and not having their name on title. Finally, finance - you may need to spouse on title to get the finance through. There are many aspects to consider. This question is always best answered with a full analysis of your financial position now and in the future.
Hi Cathy
ReplyDeleteI am planning on buying an investment property to use ‘negative gearing’ to reduce my income. I am on a high income and my wife is off work having children. Should I buy the property solely in my name?
Warren
Hi Warren, This is always a tricky question. Most people automatically think that buying in the high income earners name is the best option. It is for negative gearing but may not be the best when other factors such as land tax in the state you are buying in, future CGT issues and how long your spouse may be not income earning. Also, is your spouse comfortable with you investing and not having their name on title. Finally, finance - you may need to spouse on title to get the finance through. There are many aspects to consider. This question is always best answered with a full analysis of your financial position now and in the future.
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