Often times when I tell people to buy properties from real estate companies they give excuses and say buying directly from omo onile is cheaper and less stressful. So I set out to research this and to my surprise, I discovered a wealth of advantages in doing so! Here are the four benefits of going through a company to invest in property.
Benefit #1 – Tax Exemptions and Reductions
The income generated from the property would be tax-free for the first few years. In most countries, companies enjoy a much wider variety of tax breaks or deductions. As a property investment company, many of the expenses incurred can be expensed in the company books. Examples of expenses include: utilities, repairs, agent fees, maintenance fees, property taxes, furnishings and renovations.
Benefit #2 – Clean Way for Multiple Investors to Invest
Direct property investments require high upfront capital. Therefore a group of investors may pool resources together to share in a property purchase and profit together. By incorporating a company as an intermediary, the shareholders can easily draft an MOU into the company’s shareholders agreement. The share of the property can also be easily apportioned by using company shares.
Benefit #3 – Ability to Make Larger Investments
By incorporating a company to pool resources together, a group of investors could potentially negotiate for better prices with developers by making bulk purchases. Perhaps with a larger pool, the group of investors may even acquire costlier properties with higher yields such as shop houses or even buildings.
Benefit #4 – Enjoy Company-Specific Benefits
These include infrastructural development and many more benefits that come with buying from a company. Christal homes offers Perimeter fencing, High level security of live and properties, Accessible road networks, Well landscaped areas, Adjoining uses and facilities, recreational facilities, shopping centers, car park, garden and parks, waste management system, health facilities, banks, markets, Stable power supply functional drainage system. etc.
