Individual ownership is probably the simplest form of ownership.  You purchase the property in your own name, and any income or loss from the property is included in your personal income tax return.

Advantages

• Simplicity.
• No set-up costs (as with a company structure).

• You may be able to use any losses to offset your personal tax.

Disadvantages

• If the property makes a profit, individual ownership may not be tax-efficient, particularly if you are on the top (39%) tax bracket.  With individual ownership you may not be able to reduce tax by spreading the income from the property to other family members who may be on a lower tax bracket.
• Liability and asset protection – with individual ownership you cannot separate your investment property from your personal assets.  So for example, if there is a claim against you, your equity in the property could be at risk.

This material is for information purposes only. You should seek professional advice related to your individual circumstances. While The National Bank has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, The National Bank does not accept any responsibility or liability arising from your use of this information. Our lending criteria, terms, conditions and fees apply.