One definition of the term “structure” is “something built or constructed, as a building, bridge or dam”.
Ironic, then, that as property investors we use the term “structure” to define how we arrange our property investment portfolios.
Like a building, our investment portfolios need to have a good structure… otherwise they’ll topple down on our heads!
The structure we establish will depend upon a variety of things: our personal situations; our goals; our financial and risk-taking capacity… in short, the investment portfolio you build will be uniquely yours.
Okay, so what is a property investing structure?
It’s simply the way we choose to take ownership of the asset (aka the investment property)… right?
Well, yes, and no. It’s simple to understand, but it can also get a little tough deciding which option is the best. Even if you’ve gone through all of the pros and cons of a certain structure and think you know which one is best for you, sometimes it helps to get an expert opinion from an experienced investor.
One of the easiest and most common ways to hold title is to hold it under a personal name. No doubt many of you reading this have property under your own name. Did you have a specific reason for doing so or did you simply do it because it was the easiest?
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