Investing in property isn’t just about buying the right house in the right suburb. If you’re thinking long-term—whether it’s creating passive income, minimising tax, or building wealth across generations—then how you structure your property investment portfolio matters just as much as what you buy.
That’s where your accountant comes in. The right structure can offer flexibility, protection, and tax efficiency. The wrong one? It could cost you thousands in missed opportunities or future headaches. Here’s what to consider, and how working with a good accountant can keep your strategy solid from the start.
Start with the End in Mind
Before structuring anything, you need to be clear on your goals. Are you building a portfolio to generate income now, or are you focused on long-term capital growth? Will you hold the properties indefinitely, or eventually sell? Do you want to pass them on to children or use them to fund retirement?
Your accountant will help you map out these intentions and create a structure that grows with you. Too often, investors buy their first property in their own name, then later realise it limits their flexibility once they expand.
Buying in Your Personal Name: Simple, but Not Always Ideal
For many new investors, buying in their personal name feels easy. It’s straightforward from a lending and legal standpoint, and you’ll be eligible for the 50% Capital Gains Tax (CGT) discount if you sell after holding the property for over a year.
The downside? All the income and any future capital gains are taxed at your marginal rate. There’s also limited asset protection—if you’re sued or face bankruptcy, that property could be at risk. It may also complicate things later if you’re trying to share profits or pass on assets.
If you’re only buying one or two properties, it might still be a suitable option. But if you’re planning to scale, it’s worth reviewing with your accountant from the start.
Using a Trust for Flexibility and Protection
Trusts are a popular option for structuring an investment portfolio—particularly for investors looking for greater control over income distribution, asset protection, or estate planning.
Family (or discretionary) trusts can distribute rental income and capital gains to multiple beneficiaries, which may help minimise overall tax. Trusts can also offer protection from personal legal claims, as the property isn’t technically held in your own name.
However, trusts come with their own complexities:
- Negative gearing benefits often stay trapped in the trust
- Ongoing accounting and legal costs
- Additional admin and lender restrictions
It’s definitely not a structure to DIY. If you’re thinking about using a trust, experienced accountants Melbourne investors work with can guide you on setup, compliance, and how to manage the trust effectively.
Company Ownership: Better for Development, Not Long-Term Holds
Buying through a company is less common for residential investors, but it can make sense for property developers or those flipping properties. Companies are taxed at a flat rate (currently 25–30%), which can seem attractive—but they don’t get the CGT discount, and distributing profits to yourself means paying additional tax.
Also, companies can’t easily access some deductions available to individuals or trusts, and asset protection is more complex than it seems on the surface. A company structure might make sense in a broader business plan but is rarely ideal for long-term property holds.
Mixing Structures in a Portfolio
Some investors use a combination of structures as they grow. For example:
- Buying the first property in their own name for tax benefits
- Using a trust for higher-value or income-generating assets
- Keeping a company for short-term or development-based projects
This approach adds complexity but can be very effective if managed well. It requires good recordkeeping, regular reviews, and an accountant who understands your big-picture strategy.
Structuring for Future Borrowing and Growth
Loan structure should also be considered alongside ownership. Interest-only vs. principal-and-interest, fixed vs. variable, offset accounts—each affects your cash flow and borrowing capacity.
Different ownership structures can impact how lenders assess your ability to service a loan. Trusts and companies may face stricter criteria or higher interest rates. Your accountant and mortgage broker should work together to ensure your structure supports your financing needs.
Protecting Assets Through Structure
Beyond tax, structure also plays a major role in asset protection. If you’re a business owner, have professional liability concerns, or just want to keep investments separate from personal assets, your accountant can help create a strategy that shields your portfolio from unnecessary risk.
This might involve:
- Using trusts for separation of ownership
- Minimising cross-collateralisation
- Avoiding joint ownership in favour of strategic splits
Keep It Under Review—Structure Isn’t Set-and-Forget
As your portfolio grows, life circumstances change. Marriage, children, income changes, or legislation updates can all impact your original structure. It’s smart to review your investment setup with your accountant every couple of years—or when making a major property decision.
You may not need to restructure, but a regular check-in helps avoid surprises and ensures your setup still supports your goals.
Final Thoughts: Build with Strategy, Not Just Momentum
A property portfolio isn’t just about collecting titles. The way you hold, manage, and plan your investments has real financial consequences. Getting the structure right at the start—and refining it as you grow—can save you tax, protect your assets, and create flexibility for the future.
If you’re serious about building a long-term portfolio, work with an accountant who understands property—not just numbers on a tax return, but how investment strategy and structure intersect. Because great portfolios aren’t just built on property—they’re built on good planning.
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
