Should my properties be in a company?

[realdeals]

This is a question I ask myself time and time again, should my properties be held in a company or in my own name? Does anybody have any advice?

 

[nmb]

Many people fall into the trap of holding small property portfolios in a company. There are additional costs associated with running a company, such as filing accounts, which can be relatively expensive. Take advice about the balance between company/own name property investments. You might be surprised!

 

[Armarni Vashi]

Yes, especially if there is active income/ re-development etc... then you will be creating value in the company as-well as with the property in general.

It depends how ambitious you are ? do you want to be the next big property firm or just buy a few buy-to-let/ investment properties to sit on ?

 

[Longterminvestor]

It really does depend upon how active you want to be and your personal financial situation. There is no point setting up a property company just for the sake of it.

 

[Caroline Allison]

Hi,
I think to buy a property with your name will be more beneficial than the company name.
With your own name, you are eligible for a full CGT discount and would be cost effective to set up and maintain.
Thanks!!

 

[Phil1979]

Hi,
I think to buy a property with your name will be more beneficial than the company name.
With your own name, you are eligible for a full CGT discount and would be cost effective to set up and maintain.
Thanks!!

Hi Caroline, can i ask what 'CGT discount' is please?

Does it make a difference if you're looking to buy a property abroad as a holiday rental (as to whether you're better doing it as an individual or a company)? And if you would still say buy it as an individual, what if you bought multiple properties abroad? Does it make sense to move to a company structure at that stage?

Thanks for you help

 

[Phil1979]

Yes, especially if there is active income/ re-development etc... then you will be creating value in the company as-well as with the property in general.

It depends how ambitious you are ? do you want to be the next big property firm or just buy a few buy-to-let/ investment properties to sit on ?

Can i ask how you would be creating value as a company? Do you think it would be easier to sell a property investment in the future if it were in a company format?

 

[Caroline Allison]

Hi phil1979,

CGT stands for Capital gain tax. It refers to the profit you make from selling capital resources. Capital resources incorporate any property, for example, land, PCs or vehicles.It is always a positive outcome to generate a profit on one of your investments.

Thanks!!