One of the most important decisions to make when buying property is to decide whether to do it in a personal capacity or under the name of a registered company. Both options have their pros and cons, and the appropriate choice will depend on each buyer’s individual circumstances.
Buying personal assets
Most people buy property on their own because it is the most common and easiest way to do it. By purchasing a property in a personal capacity, the buyer becomes the legal owner of the property and is responsible for all aspects of the property, from mortgage payments to maintenance and repair of the property.
The main benefit of purchasing a personal title is the simplicity of the process. No company formation or additional document submission required. In addition, the buyer has full control over the property and can make decisions without consulting anyone else. However, buying a personal title has its drawbacks as well. In the event of an accident at the property, the buyer could be sued personally and risk losing his personal assets. In addition, if the buyer has other important assets, such as a business or an investment portfolio, those could also be at risk in the event of a lawsuit.
Buy under the name of a registered company
The other option is to purchase the property under the name of a registered business. This option may be attractive to those who want to protect their personal assets or those who wish to use the property for commercial purposes. One of the main advantages of buying under the name of a company is that the buyer’s personal assets are protected in the event of a lawsuit. If an accident occurs on the property and a lawsuit is filed, the buyer is only responsible for the assets of the business, not for the buyer’s personal assets.
Also, buying under a company name can have tax benefits. The property can be used for business purposes, which can lead to tax deductions for the company.
However, buying under the name of a company also has its disadvantages. The process can be more complex and expensive than purchasing on your own. Furthermore, the company will be responsible for all payments related to the property, including the mortgage and maintenance.
The decision to purchase a property under the name of a registered company or in a personal capacity depends on each buyer’s individual circumstances. If the buyer wants to protect their personal assets or use the property for business purposes, it may be beneficial to buy under the name of a company. If simplicity is preferable and there are no worries about
For the protection of personal assets, buying on a personal basis may be the best option. It is important to consult an attorney and tax advisor before making the best decision based on your circumstances.
In conclusion, if you are considering buying a property, it is important that you know that your future taxes and liabilities could be affected depending on the way you make the purchase: as a natural person or through a company. In this sense, a Real Estate Agent could help you select the best option, since it is a decision that must be carefully evaluated, considering the long-term financial objectives.