Owning properties as a Sole Trader Holding a property in a sole name can be tax beneficial under certain circumstances. But as with all strategies, there are benefits and drawbacks of owning properties in this way. Buying properties as a Sole Trader A Sole Trader is an individual who buys properties in his or her sole name. Although it is still a very common way to purchase properties, it is not necessarily the most tax efficient. But in most cases, properties are usually purchased as a sole trader for non-tax-related reasons. Here are the two most common non-tax-related reasons why you might decide to buy property as a sole trader:
- You don’t have a partner who you can invest with.
- You don’t want to invest with anyone (generally because you can’t trust anyone, or you want total control over your investment).
- If you have invested for either of these reasons, you can still make tax savings.