Analyzing Why The Rich Almost Never Buy Homes In Their Own Name
It's hilarious how people don't know about this simple finance strategy...
I recently came across this article which revealed that the majority of ultra-wealthy individuals almost never buy properties in their own name. Upon reading the comments, I was shocked to find that most people don't know this simple secret, which could not only save them millions but also make them millions.
Here’s a breakdown of all the essential things you need to know behind the strategy of not buying a home in your personal name:
1. No Leverage and Killing Investment Opportunities
Buying homes in your own name limits the financing options.
You have to use your personal credit and income to get a loan.
This limits how much you can borrow and ties up your personal finances.
But when you buy the house through a company or trust, you can use business money or business credit, keep your personal credit score clean — since business credit doesn't show up on personal credit reports — and save your personal borrowing power for other things, like investments or even more properties.
2. Hidden From The Public
When your name is on the deed, your wealth is public — searchable by governments, journalists, and even stalkers.
Rich people use nominee directors and corporate shells to hide ownership and stay hidden.
3. No Tax-Free REIT Income
Wealthy individuals invest in Real Estate Investment Trusts (REITs) — enjoying tax-free returns, steady cash flow, and appreciation.
All this while avoiding capital gains tax.
4. Exempt from Personal Income Taxes (Up to 45%)
The tax rates on personal income is absurdly high, varying from 37% in the USA to up to 45% in Japan.
Corporations, on the other hand, pay just 19–25% and can delay or reduce tax further through reinvestment strategies.
5. Vulnerable to Lawsuits and Creditors
Personally owned homes are exposed during divorces, lawsuits, or debt collection.
Company- and trust-owned assets have legal firewalls and can't be easily seized.
Now, you also have the knowledge why the rich don't buy homes in their own name. It's about smart business. It's about protecting wealth, saving taxes, and setting yourselves up to build even more wealth in the long run.
Most of us don't think twice about putting things in our own name, but maybe we should.
"You don't gotta be a millionaire to think like one."
Interesting thoughts! I have never thought about those ideas before. I will have to noodle on these. "Noodle candy" is a term my coach came up with and it's about ideas that we have never thought of and thinking about how they apply to our lives (in the back of our minds). This is some noodle candy.