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Whether you’re an experienced investor or just getting started, buying an investment property can be a great way to get ahead financially. But when it comes to purchasing property, there are some decisions that need to be made. One of the most important decisions is whether you should purchase your property in a limited company or your own name. In this article, we’ll explore the pros and cons of each option so that you can make an informed decision about which is best for you.


Buying Investment Property in Your Own Name:

Buying an investment property in your own name can be a great way to diversify your investments and potentially increase your net worth over time. The advantages of buying in your personal name include:

  • You have complete control over the decision-making process and any changes made to the property;
  • It may be easier to obtain financing if you’re using your personal credit;
  • Your profit will not be subject to corporation tax; and
  • You may take advantage of certain tax deductions such as mortgage interest payments.


The primary disadvantage of buying in your own name is that any liability associated with the property also falls on you personally. This means that if something goes wrong with the property—for example, if there are tenant disputes or legal issues—you could face serious financial repercussions.


Buy Investment Property in a Limited Company:

 Buying an investment property through a limited company has its own set of advantages and disadvantages. Some of these benefits include: 


  • Separating risks from personal assets; 
  • Taking advantage of more tax breaks than individuals receive; 
  • Easier access to larger mortgages (but more complex loan requirements); and 
  • More perceived credibility with tenants due to corporate structure being seen as more professional than individual ownership. 


The primary downside to purchasing through a limited company is the cost involved with setting up the business structure and maintaining it over time, including filing taxes, accounting fees, etc. Additionally, it can take longer for funds from rental income or sales proceeds to reach you after they have been received by the company due to various administrative delays related to running a business entity rather than owning an asset outright as an individual would do.   


When deciding whether it’s best for you to buy investment property through a limited company or your personal name, there are several factors that must be taken into consideration before making a final decision. These include weighing potential risks associated with either option, understanding how much money can realistically be invested into each type of transaction, considering any tax breaks available through one option versus another, researching loan requirements for both scenarios, and estimating future maintenance costs associated with each approach. Ultimately, only you can decide which route is best for you based on all these factors combined together—but no matter what path you choose, rest assured knowing that either option has its own set of benefits depending on what type of investor you are!

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