Benefits of Buying Your Home With an LLC

The Weekly Recap

Good morning and happy Friday! Inflation for April cooled to 2.1%, the S&P500 posted its best month since April 2023, there are 560,000 more millionaires in the US YoY, Hamptons summer rentals are down 30%, Equinox owes you money if you tried to quit and they made it super hard for you, and Billionaire Besties Musk and Trump entertained the world with their little internet break up but Musk wants to get back together.

If you missed last weeks newsletter on How Should You Begin Your Home Search?, you can read that through the link.

Benefits of Buying Your Home With an LLC

Buying a home in New York City through a Limited Liability Company (LLC) offers several advantages, especially for investors, high-net-worth individuals, and privacy-conscious buyers. While purchasing in an LLC is no problem for condo purchases, CO-OPs (in most cases) wont allow it but depending on the building may allow it.

Personal Asset Protection: When property is held in an LLC, liability is generally limited to the assets held within the entity. This means that in the event of a lawsuit, financial risk is typically confined to the LLC itself, shielding the individual owner's personal assets such as bank accounts, cars, or other properties. This is especially valuable if the property you are purchasing is going to be used as an income generating rental property, and even more so in NYC where tenant-landlord laws are complex and litigation risks are not uncommon.

Privacy: New York State allows LLCs to purchase property without publicly disclosing the individual members' names in the deed records. While transparency laws have tightened in recent years, especially in Manhattan, structuring ownership through an LLC still provides more confidentiality than direct personal ownership.

Tax Advantages: LLCs offer pass-through taxation, meaning the income generated from the property flows directly to the owner(s) and is taxed only once, avoiding the double taxation faced by corporations. In some cases, buyers may also benefit from more flexible deductions related to business expenses, property management costs, and depreciation.

Flexibility For Estate Planning and Asset Transfers: Instead of transferring the deed to a property, owners can transfer membership interests in the LLC, potentially avoiding costly transfer taxes and streamlining the inheritance process. For both domestic and international buyers seeking a stable, long-term asset in one of the world’s most resilient real estate markets, using an LLC to purchase a home in New York City can be a strategic and protective move that aligns with wealth preservation and expansion goals.

If you’re curious on how to transfer existing property into an LLC or want to explore further, feel free to reach out and I’ll connect you with someone who specializes in this area!

Market Performance

Here are how some other indexes and asset classes have performed as of this Mornings opening bell.

NYC Market Update

Here is a view of NYC market activity over the past week.

Mortgage Rate Update

Mortgage rates declined week over week and with core PCE Inflation being at 2.1% (the closest its been to the Fed’s preferred inflation number of 2%), the talks of rate cuts in the back half of the year should help bring more confidence to the marketplace.

News You Can Use

• Inflation Rate Slipped to 2.1% in April, Lower Than Expected CNBC

• Why the S&P 500 Is Cruising Through Policy Upheaval Bloomberg

• S&P 500 Posts Best Month Since 2023 as Wall Street Tries to Ignore the Trade War CNN Business

• Fed Set to Hold Rates Steady Despite ‘As Good As It Gets’ Inflation Print Yahoo Finance

• The US Minted More than 560,000 New Millionaires in 2024, Far Outpacing Other Countries Fortune

• CBO Projects Trump Tariffs to Cut Budget Gap by $2.8 Trillion Bloomberg

• Scott Bessent Says US Will Never Default Bloomberg

• Trump Says ‘Too Late’ Powell Must Lower Interest Rates CNBC

• US Job Openings Unexpectedly Rose in April and Hiring Picked Up Bloomberg

• Trump Team Signals It Wants to Keep Control of Fannie, Freddie to Boost Budget Bloomberg

• Summer Rentals in the Hamptons are Down 30% CNBC

• Wall Street’s Love for Alternative Assets Isn’t a Good Deal for Clients Bloomberg

• The Day That Trump and Musk Torched Their Partnership Wall Street Journal

• Musk Says He’s Open to Cooling Off Period with Trump Bloomberg

• Here’s Where NYC Mayoral Candidates Stand on Key Issues Bloomberg

• Equinox, SoulCycle Agree to Pay NYers Restitution For Making it Hard to Quit Gothamist

The Deep Insight

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Feel free to reach out to discuss more in-depth about your real estate goals, share your thoughts about my newsletter, or to share what you're experiencing in this market. Looking forward to hearing from you!