Whether or not to invest in a property through a limited or LLC company needs carefully consideration. Certainly you can do this, but whether it is tax efficient is an important question to ask before you do anything, particularly if you are tipping the higher earning bracket. You definitely should NOT buy your main home through your company. If you did, you could incur a benefit in kind unless you paid the commercial rent to your company. Secondly, any gain on selling the property would be subject to corporation tax, whereas if it’s a property owned personally, equity from the sale of your home is usually entirely tax exempt.
Research Is The Key to Success
Location
Finding the right investment location can only be done when all the facts and figures are in. Several areas need to be considered
Property Taxes
Checking out the local taxation in your selected areas will save last miniute surprises eating away at your investment.
Local Amenities
Family homes for renting will require good amenities, so check out every location you feel is a good area.
Jobs Market
A Good jobs market is essential for acquiring a safe rental or selling portfollio of properties.
Average Rental
Checking rental prices will give you insight as to how much to spend on your investment in your chosen areas.
Risk Assesment
Taking notes of the down sides of the area like crime, flood risk etc, will arm you with the knowlege of risk to your investment.
