03 Sep by Amy Jackson

Buying Property through a Company

The Benefits of buying Property through a Company

If you’re new to property investment, you might be confused about the different types of property you can invest in, and the various ways that property investors are able to invest for capital gain and returns from their rental property. 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 buy property via a property company during your rental property investment journey.

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How Buying Property through a Company can Benefit you

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You can secure Assured Rental Yields

When buying property for investment purposes, 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 income needed for a lucrative investment. Not only do property companies help to find 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, providing peace of mind for our clients. While you could get high rental yields 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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It’s Less Time-Consuming

Investing in property can be a long and time-consuming process. Right from the first 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 buy to let property through a limited company, the process is made a lot easier and quicker because you’ll already be presented with a choice of fantastic investment opportunities. Because rental yields have already been worked out by the property investment company, you won’t need to worry about working these out yourself, which makes it easier to choose between the different investments available. So exactly how long is the process of buying a house or apartment for investment purposes? This can vary and depends on things like the exchange process and completion date if the property is off-plan.

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 for a more hands-off investment. There are pros and cons to this, as while it might be a good option for anyone who wants to build a property portfolio at the same time as maintaining a career, it’s not the best choice for someone interested in a hands-on investment. In this case, you might want to manage the property yourself which gives you more freedom, while still earning rental income with minimal effort and time spent on the investment.

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You can Choose from the Best Deals

Property companies are experts in their field, easily recognising the difference between a good and bad investment. When buying property through a company, you can rest assured that the property opportunities on offer are some of the best on the market. 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.

You’ll be offered Discounted 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. Property investors involved with buying property through a company will usually be offered below-market rates, particularly if the development is off-plan like those at RWinvest. This makes the process a little easier on the purse strings as you’ll pay a lot less than you would normally pay, with the added bonus of potentially higher yields and stronger capital growth prospects meaning better property income.

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You’ll be Guided through the Process

When you find a property through your limited company that you like the look of, you’re able to get in touch with the company, getting professional advice and asking questions about the specific property. Having an over the phone conversation or face to face meeting can really give you a better idea of an investment and settle any concerns you might have. The best property companies will also make sure they work with only top property development companies to bring their clients the highest-quality choices of student and residential property. A good thing about investing in properties via a property investment company is that once you’ve built a good relationship with the company, you can build a varied portfolio using the different opportunities they have available. You could even consider easily switching property types if you want to try out a new type of investment – such as going from residential to student – alongside your existing one.

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