🎧 This episode is a strategic deep dive sparked by a brilliant listener question from Brendan.

Brendan already owns four investment properties. He’s recently changed careers, reducing his income from $200K to $70K, while his wife, (currently on mat leave), will soon return to a $200K+ salary and qualifies for an LMI waiver as a legal professional. They’re planning to purchase property number five and want to structure it smartly.

Brendan wants to know; should the new investment be purchased in his wife’s name to maximise negative gearing benefits? If so, how do they access equity from Brendan’s solely owned properties without creating tax or lending traps?

The Trio unpack the big themes:

Ownership structure matters.
Buying in the higher income earner’s name can maximise tax deductions today. But negative gearing doesn’t last forever. Future positive cash flow and capital gains tax need to be considered across the entire holding period.

Think long term.
Income levels change. Maternity leave, career progression, retirement timing; all of these shift the tax equation. A 90:10 split, 50:50 structure, or sole ownership each has different long-term implications.

Follow the money.
Tax deductibility depends on who borrows, who owns, and what the borrowed funds are used for…. not simply which property is used as security.

Lender policy is critical.
Serviceability, probation periods, substantial benefit tests, guarantor structures and LMI waivers all influence what’s possible, and when.

….and our gold nuggets!

Mike Mortlock’s gold nugget: Mike reminds listeners of the power of experience when it comes to specialist advisors. Dave has demonstrated the complexity of the decision matrix many times on The Property Trio.

Dave Johnston’s gold nugget: There isn’t just one right structure. And what works perfectly for someone else may not be the right structure for you.” Tailored advice is absolutely critical for any investor seeking to navigate the optimal path.

Related episodes:

• Ep. 24: How mortgage strategy shapes your ability to hold property and how it can pay off for decades to come
• Ep. 87: Optimising tax deductions – top mortgage and loan strategy tips
• Ep. 203: Ownership structures Part 1: Co-ownership, parental support, buying with friends and alternative ways that buyers enter the market
• Ep. 204: Ownership structures Part 2: Parental support, shared equity schemes and co-ops
• Ep. 230: Equity Unleashed: Property Planning & Borrowing for Renovations & Wealth Creation
• Ep. 250: Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation

Upcoming ep: #352: Housing Targets, Taxes, and Australia’s Structural Supply Problem

And… don’t forget our LIVE Podcast Event this week – Thursday 5th March at Latrobe Golf Club – 8 Farm Road, Alphington, VIC.

Our listeners can purchase a VIP ticket and meet the hosts in person before the event starts. Every attendee will receive a book that Cate has co-authored, and VIP attendees will get an additional copy of Dave’s book.

This will be an intimate live recording with the three of us…. real conversation, audience questions, a bit of banter, and the kind of discussion we usually only have behind microphones.

If you have enjoyed the podcast, this is a chance to experience it properly in the room. As a special bonus, we’ll also have the Property Professor himself as MC!

You can access tickets here.

Places are limited, and once early bird tickets are gone, remaining tickets will be full price.

We would love to see you there!

Warmly,

Mike, Cate and Dave