Keep it in the family
Investing with family is not a new concept. Indeed, huge numbers of Australians have some form of investment jointly owned with relatives. The benefits of investing jointly with relatives include:
• Capitalising on economies of scale to purchase bigger assets for bigger returns;
• Giving singles, young people and lower income-earners a foot in the door;
• Drawing on collective wisdom to make decisions;
• • Building Tax benefits a legacy , provided and keeping your set assets -up is in right the ; and family.
As with everything in life, though, there are drawbacks, too.
Investing with family can:
• Impact relationships if there are financial or strategy disagreements;
• Reduce the family support available to fall back on should investments go sour;
• Become overly complex having multiple households involved;
• Allow emotions to override rational decision-making; and
• Cause financial discussions to take over what should be quality family time.
Furthermore, the pros and cons of investing with family differ depending on the type of assets you invest in and the structure you use to manage those investments. So, it’s worth looking at the merits of each individually before making any decision to pool your funds.
1 Property
Australians love property, with billion of
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