Serviceability : married couple joint names

I have been looking over past threads and i am confused about if buying in joint names will limit us from buying a larger portfolio in time. Seen something about buying in joint names rarther than putting one in one name the second in the wifes could limit how much we could borrow. Is this true? Or is it only relevent to friends or non married people buying together. I could not work it out from the threads.

 

What area is the unit in?

I'd buy in one name for land tax purposes. I've written quite a bit on this previously. Change to the other persons name once threshold reached, then use Trust once 2nd persons threshold is reached.

 

Joint names may get u more while both working. Generally single name ownership is preferred for flexibilty. See my tax tips.

 

How you structure the ownership of the property (ie whose name the property goes in or joint) doesn't have a huge difference to borrowing capacity except in how the negative gearing benefits are calculated.

There is a HUGE difference in buying in a single name AND only applying for the loan in a single name - you will run out of borrowing capacity very quickly if wanting to build a reasonable size portfolio and don't have individual incomes of 150k+ each.

 

Thanks guys so joint names is fine then. Not worried about land tax as planning to mostly buy in victoria. Only on salary of 85000 and 81000 so more power together.

 

Then land tax will become a consideration.
Land Tax | State Revenue Office

 

Every state had its own land tax method, and free threshold amount. So planning to buy mostly in one place = definitely plan for land tax.

Perhaps talk to a broker who's on top of that while keeping within serviceability guidelines such as Corey who posted above.

 

single can give greater borrowing capacity and other benefts

Tax Tip 21: Tax Advantages of Buying property in 1 name only https://propertychat.com.au/communi...tages-of-buying-property-in-1-name-only.2967/

 

I would run it by a broker who can assess your borrowing capacity as individuals and as a couple.

 

Strategy: Buying Investment Properties in 1 name only https://propertychat.com.au/communi...ng-investment-properties-in-1-name-only.5888/