Tip 3: Purchasing a property through a company or under your own name

Your future taxes and liabilities may be affected if you buy your new property with a company or buy under your own name. An accountant or lawyer can help you select the best option. It is common to observe that the use of an LLC (limited liability company) is the most frequent due to:

  • This protects the owner of possible lawsuits related to the property.
  • Allows you to deduct the expenses generated by the property.
  • It allows owners to avoid double taxation.
  • If the LLC has been created with only one owner, it could deduct the interest on the mortgage loan.

Now, is it appropriate to create an LLC for each property?

If there are several properties purchased with a single LLC, one property could expose the others. The suggestion, decision and creation of an LLC type company does not present any difficulty, however, it is preferable that it be carried out by qualified personnel and it is not an activity that a Real Estate Agent is authorized to perform.

You may also like

Among the possibilities for buying properties there are mainly the following: a) Properties that are not new, b) Properties that are brand new or less than 6 months after completion of construction, c) Properties in pre-construction or new developments.

Brief and simplified explanation of the property purchase process:

It is important to know where to buy, the area and its benefits. However, to select the right location it is necessary to know the budget we have. As a Real Estate Agent, I can assist you in every step of the way during the selection of the area.

Are you looking to invest?

Contact me