When buying property with a partner, friend, or family member, choosing the right ownership structure is crucial. In Australia, the two main options are Joint Tenants and Tenants in Common. Here’s a quick breakdown to help you decide what’s best for your situation.
Joint Tenants
- Shared Ownership: Both owners equally own 100% of the property.
- Right of Survivorship: If one person passes away, their share automatically goes to the surviving owner.
- Common Use: This structure is ideal for couples who want to share the property equally and seamlessly transfer ownership in the event of death.
Tenants in Common
- Divided Ownership: Each person owns a specific share of the property (e.g., 50/50 or 70/30).
- Flexible: You can sell or pass on your share independently, and it doesn’t automatically go to the other owner if you pass away.
- Common Use: Perfect for friends, family, or business partners who want more control over their portion of the property.
Why It Matters
Choosing between Joint Tenants and Tenants in Common impacts your future financial and legal rights. Joint Tenants is great for those who want equal ownership, while Tenants in Common offers flexibility, especially if ownership shares differ or if you plan to pass on your share to heirs.
Need Help Deciding?
At SFP Financial, we guide you through the process of selecting the right ownership structure for your needs. Whether you’re buying your first home or investing, we’ll help you protect your interests.
Contact us today to learn more about your options!
