The most common and simplest investment vehicle is a person holding investments in their own name, either singly or jointly. Investments in an individual name can be:
- Easy to set up and manage as income and capital gains are included in the individual's own tax returns.
- Easier to administer as there is much less paperwork in comparison to other structures.
- More cost effective as there are no additional expenses to set up and run.
- More tax effective, especially if the investment is negatively geared or one of the individuals is a low income earner.
- Tax advantaged if the investment is the family home.
However, assets held by an individual offer no flexibility with the distribution of income. Individuals in high-risk occupations could be sued and their assets exposed to risk from creditors. Negatively geared assets held by an individual will eventually become positively geared, resulting in an increased tax liability over time. The same advantages and disadvantages apply to assets held jointly.