Property Ownership In Australia – Acquiring Real Estate

There are various ways to acquire real estate in Australia:

• A direct transfer from one entity to another;
• An acquisition of the shares or units held by the owner;
• A call option or put and call option agreement; or
• A long-term lease.

There are legal, regulatory and tax consequences for each method, which will influence what is the most appropriate method for you to choose. For example, the use of a Managed Investment Trust, or of leases and subleases of a property, may have advantages for flow through or withholding tax exemptions.

You must consider the Australian taxation consequences before you undertake any investment. This should be the first step you undertake in the process. The optimal investment structure from a tax perspective will differ for each investor, depending on the investor’s identity, the property’s type and the investment’s nature.