Tax advantages. There are several ways in which property ownership can be used for legitimate tax avoidance - though this should not be your first and foremost reason for buying the property, more a side benefit.
Regards,
Canreig
What should the first and foremost reason to buy property be?
there is only one way to use real estate for tax avoidance: to have a loss that will offset other income and the tax thereon.
using real estate as a tax avoidance tool is tricky. You would have to hit the “sweet spot” where cashflow (actual income from operations) is positive, but still a tax loss due to non-cash depreciation.
this is difficult because rents are set by market forces, and expenses can be are unpredictable.
better to make investment decisions to maximize income and let taxes be whatever they are. if you try to use real estate as a tax reduction tool, and miss the sweet spot, you are either unsuccessful in your tax strategy, or worse you end up with a real cash loss, which should never be your investment strategy.
remember, you only pay tax if you have income.