The Five Most Common Forms of Property Ownership in New Zealand
Choosing the right form of ownership for a property is an important decision. There are several options available, each with its own advantages and disadvantages. Let's take a closer look at some of the most common options:
Sole Tenant
This is when you buy the property alone and are the sole owner. While it gives you full control over the property, it also means you are solely responsible for all costs and expenses.
Joint Tenants
This is a common ownership type for married couples. With joint ownership, the property automatically passes to the surviving spouse on the death of one party. However, this may not be the best option if you have children from a prior relationship, as they may not inherit their parent's share in the property.
Tenants in Common
With this option, you own a specified share in the property, either in equal or unequal parts. This is a good option for couples who are not married, in a de-facto relationship, or friends who are buying together. You can also leave your share in the property to beneficiaries named in your Will.
Family Trust
This can be a good option if you want to protect a major asset against creditors and other risks and also provides an effective estate planning tool.
Look Through Company
This is an ownership structure often used for rental properties.
So, what’s right for me?
Consider your individual circumstances and consult with a lawyer and accountant to determine which form of ownership is best for you.
