THE PROPERTY NERDS: Same bank, different rules

Buying investment property through a trust might sound like a smart strategy, but what if it costs you thousands, shuts you out of half the lending market and stops you from buying your next property? Arjun Paliwal and Jack Fouracre expose the hidden costs of property ownership structures, and why buying with family or friends could be just as risky. On this episode of The Property Nerds Podcast, InvestorKit's Arjun Paliwal and Fouracre Financial's Jack Fouracre challenge the rush to buy through trusts, companies, and joint ownership structures, revealing the financial pitfalls investors often overlook. The pair unpack the costs of setting up trusts, including complex arrangements costing up to $15,000, higher interest rates, ongoing accounting fees, and the inability to offset trust losses against personal income. Fouracre explains why trust borrowers can lose access to more than half of a broker's lending panel, how tighter debt-exclusion policies can restrict borrowing capacity, and why accessing equity for the next purchase is becoming increasingly difficult. They also explore the risks of buying with family or friends, including scenarios where lenders assess one investor against 100 per cent of the debt but recognise only half the rental income. The pair explain how specialised lending policies can help, and when investors may need to unwind joint ownership arrangements. Ultimately, they reveal why the right ownership structure depends on an investor's circumstances, and why understanding the downsides before buying could save thousands and protect future borrowing capacity.