When deciding between individual vs. company ownership for property investment, it’s important to consider factors like tax rates, asset protection, and financing. Individual ownership offers benefits like a 50% capital gains tax discount and easier access to loans, but it also exposes personal assets to risk and may result in higher taxes on rental income. Company ownership provides better asset protection and a lower, flat tax rate on profits, but it comes with more complex setup and higher interest rates for financing. Understanding these differences is crucial in choosing the best structure based on your financial goals and risk tolerance. Here is a quick comparison of Individual vs Company Ownership

Tax Minimization: Tax minimization simply means finding ways to pay less tax by using legal methods, like choosing the right business structure or taking advantage of tax breaks, so you keep more of your earnings.

• Individual: CGT discount (50%) if held >1 year, but high marginal tax rates (up to 45%).
• Company: Flat 25-30% tax rate, but no CGT discount. Profits can be reinvested with lower tax.

Short-Term Flips: Short-term flips mean buying a property, quickly making improvements or changes, and then selling it for a profit in a short period—usually within a year. It's like buying something cheap, fixing it up, and selling it for more money right away.

• Individual: Profits taxed as income (up to 45%)
• Company: Profits taxed at a flat corporate rate (25-30%).

Rental Income: Rental income is the money you earn from letting someone live in or use your property. It's like getting paid every month for renting out your house, apartment, or commercial space.

• Individual: Taxed at individual rates, but negative gearing benefits apply.
• Company: Taxed at corporate rate, but no personal use of negative gearing.

Asset Protection: Asset protection means keeping your personal belongings, like your house or savings, safe from being taken if something goes wrong, such as a business failure or a lawsuit. It’s like putting your valuables in a safe place where creditors can't get to them.

• Individual: No protection—your personal assets are at risk.
• Company: Company limits liability and protects personal assets.

Financing: Financing is how you get the money to pay for something, like a house or property. It often means taking out a loan from a bank or lender, which you then pay back over time with interest.

• Individual: Easier financing, lower interest rates, higher LVR.
• Company: Harder to get loans, may require personal guarantees, higher interest rates.

Admin & Compliance: Admin & Compliance means the paperwork and rules you need to follow to keep things running smoothly and legally. It's like making sure you fill out all the forms, pay your taxes, and follow the law to avoid trouble later.

• Individual: Simple tax reporting, fewer ongoing costs.
• Company: Higher setup costs, ASIC compliance, and more admin burden.