Do you incorporate?

[Joanne Wood]

Yes.  I'm new.  Please excuse my ignorance.  Do you purchase properties under a business name or personal purchase?  

Wondering what the advantage and disadvantage os to both.  

😄

[Roy N.]

Originally posted by @Dan Zupancic:

qualifying for financing as incorporated in Canada is more difficult and at higher rates.  You dont need to incorp till you hit 5+ properties and even then discuss with your accountant.

That is not necessarily so.   

If you are borrowing against residential properties owned by a holding company, all shareowners of the company will be required to personally guarantee the financing just as if you held the property directly.   We've financed many properties in such a scenario and the rates were no different than when a property is owned personally.

However, I do agree that a holding company is typically unnecessary overhead when first starting out, but that is dependent on your personal financial situation, marginal tax bracket, etc.   A sit down with your accountant to determine a strategy for if/when and how properties should be transitioned into a holding company is definitely in order.