Discussion going on at Lowyat.

Properties bought under a company
http://forum.lowyat.net/topic/962566

Yes you may. But don’t forget you have to transfer the properties to your new company which will cost you some money.

All properties under a company are assets to all shareholders in terms of share. In other words, if you put your 2 self-owned apartments under your company, all shareholders of the company will have a share in your 2 apartments too.

Cheers

It makes sense to start with individual ownership first. However, it may not be necessary to setup a private limited company after you acquires your 4th property. It depends on which approach will give you the maximum cash flow.

If the total cash flow generated from your 4 properties (after all the operating expenses and corporate tax) is lower than the total cash flow generated if you own them under individual ownership, setup a company is not advisable. For example, if you have 4 low-cost apartments which give you a total cash flow of RM2000 every year before deducting any secretarial and auditing fees, it’s better you don’t setup a company because yearly secretarial and auditing fees are already around RM2000.

Buying properties together with spouse is so far the best way to acquire properties with individual ownership. You can make use of 2 persons’ income tax brackets to pay the minimum tax while easily get approval from bank for your loan application because of higher allowable credit limit.

Cheers

Would it make sense to start with individual ownership, then when the investor acquire 4 properties, a private limited company is setup to hold the real estate?

My situation is that I co-own our existing properties with my wife. What do you recommend?