In Canada, is it better to own real estate privately or through a corporation, and why?
The first thing to get out of the way is that if you plan on only owning 1(2-4 units) rental property, you won’t get any significant tax savings from incorporating. If you plan on having a few properties 2+, then you should seriously consider a corporation for tax savings and legal liability protection.
Financing: Before you buy a property in a corporation, consider the financing implications. Many lenders don’t like to lend to corporations(Even if you personally guarantee the mortgage). So speak to a licensed mortgage broker who can help with financing.
Estate Planning: It is much easier to plan for clients’ estates when assets are owned in a corporation.
Don’t ever commit to an organizational structure that you don’t understand. Sit with your accountant until you understand it
