5 Key Benefits of Buying Property through a Company

Why You Should Consider Buying a Property Through a Limited Company

If you’re new to investing in property, you might be confused about the different types of property you can invest in, and the various methods of buying property for investment purposes.

Buying a second home and renting out the first or buying a completely new property for buy to let property purposes will both have a different strategy behind them, for instance, so it’s always worth thinking about the route you’re going to take before buying property.

One of the most popular methods when buying a second property to rent out is to use a property company to help find the perfect investment. But what are the benefits of buying property through a company, and is doing so the right choice for you? We’ve put together a guide to some of the reasons why you should consider buying property through a limited company during your rental property investment journey.

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What is a property investment company?

A property investment company is a company who sources new and exciting property investment opportunities. The company will collaborate with property developers to offer investors the latest properties on the market, often with below-market rates. Property investment companies will often help investors with their venture by recommending solicitors or property management companies, making the process easier and more efficient.

Buying Property Through a Company

How Buying Property through a Limited Company can Benefit You

Buying Property Through a Company Brings you Assured Rental Yields

When buying property for an investment, high rental yields are one of the main things that investors look for. Without a high enough yield, you won’t be able to generate the type of rental profits and high rental property income needed for a lucrative investment. Not only do property companies help to find investment property opportunities with the highest yields, but they also tend to offer assured yields for a set period of time.

Assured rental yields mean that for the period stated (usually between 1 to 2 years), the investor will receive guaranteed rental profits. At RWinvest, many of our properties come with assured rental yields, giving our clients peace of mind that they’ll be able to generate some attractive returns.

While you could get high rental yields from investing in property without buying a property through a limited company, these are not usually assured, so you’ll have less security in knowing the rental returns you should receive and could be at risk of your income falling.

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Buying a House Through a Company is Less Time-Consuming

Whether you’re purchasing a property to live in or as an investment, buying property can be a long and time-consuming process.

Right from the initial steps of property investment, such as researching the best locations and hunting for opportunities that meet your needs and budget, a lot of time can be spent on the investing process. When buying a property through a limited company, however, the process is made a lot easier and quicker.

So why is the process of buying property through a company easier? One reason is that investing with a company takes the hassle out of your property search. One visit to the website or your chosen property investment company, and you’ll be met with a choice of fantastic property opportunities, complete with details of the investment and information about the property.

Property investment companies care about sourcing only the very best deals, so when buying property as a company, they’ll usually do extensive research into the development to ensure it has a lot of potential. Take RWinvest for example – we don’t bother with investments in low performing cities or areas, instead paying attention to market trends and offering our clients a selection of properties in areas with emerging markets like Liverpool and Manchester, where opportunities are sure to bring in some of the highest rates of rental income.

As part of this process, the company will calculate rental yields for the property, meaning you won’t have to. The property investment company will also help manage any administrative elements of buy to let, such as dealing with solicitors on your behalf and helping to find you trusted property management companies if you prefer a more hands-off investment.

Buying Property Through a Company

Buying a Property Through an Investment Company Helps you Build Confidence

If you’re new to investing and looking for a way to launch your rental property portfolio, buying property through a limited company is a great first step. Because these companies are experienced in the property sector and able to guide you through each step of your investment, buying property in this way is a good opportunity to build confidence and knowledge.

By gaining support and guidance from a property investment company, investors can learn more about the investment process and what’s involved, and become more familiar with the property market as a whole. Those who have invested by buying a house through a company should also be better able to identify any bad opportunities, allowing them to build a strong and lucrative buy to let portfolio. Once investors are equipped with this know-how, they can choose to either continue purchasing properties with an investment company, look elsewhere, or even start buying property as a company of their own.

Buying a House Through a Company Allows you to Benefit From Below-Market Rates

Property investment can be a pricey venture, especially when you take into account any added costs such as income tax, capital gains tax or stamp duty tax when buying a second property. Investors who choose to buy property through a company will normally be offered discounted rates. This is because a lot of the time, investment companies will offer their investors off-plan properties, which is a property which hasn’t yet been completed.

By investing in a property with below-market rates, you’ll not only be able to choose from a wider range of options that meet your budget, but you’ll also benefit from better returns. A good example of an off-plan investment that comes with a lot of potential is the Liverpool development, Poets Place. This property is available to purchase from £70,950 and comes with net rental yields of 8%, along with boasting a prime location with a high likelihood of capital growth.

Are you Interested in Investing With RWinvest?

If you’re keen to begin your investor journey and interested in buying property through a company, get in touch with RWinvest. If you’re wondering how to get into property, we can guide you through the process of building a lucrative property portfolio with our wide range of off-plan developments. Take a look at our latest student and residential property developments to find your perfect opportunity today.

Download Our Free Buy to Let Property Investment Guide

Download Our Free Buy to Let Property Investment Guide


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