Are you planning a real estate purchase? Are you thinking about some rental properties to generate cash flow?
Well, you are not alone. After the recent revealing book by Michael Lewis on the rigged stock market; it might be a good time to evaluate investing in real estate.
So, why invest in real estate? What are the top 3 reasons to invest in real estate:
- Control: You don’t have to rely on a stock market gyrations to make money with Real Estate and you are in complete control of your investment. If you pay your mortgage on time, you can use it to generate income or resell it.
- Appreciation – Even after the worst recession in recent memory, property values have recovered in more than 48 States. That is more than some our stock market investors could wish for with their stock market portfolio could say.
- Tax Advantages – Written into the IRS tax code are tax advantages of owning real estate long term. From deductions to improvements on your rental properties to mortgage interest deductions, there are good reasons to consider real estate investment for cash flow and retirement.
Types of Investment Property to Purchase:
There are many different types of property that you can choose as your investment. The things that you should be clear about when you’re investing in property are:
- Income Property – Buying for cash flow make a lot of sense in the current market and your dollar will go a long way in places like Stockton or Modesto these day as opposed to San Jose.
- Capital Appreciation – Homes in Santa Clara county have appreciated more than 10% this year, but the affordability index is at it’s all time low and some investors have walked off the market due to these high prices.
- Flips – Buying properties for the sole purpose of fixing them for sale is one of the most profitable practices. However, you will be subject to capital gains tax. These kind of projects have become more fashionable with the popularity of HGTV’s flip shows like Property Brothers….. etc.
Contact Us when you are ready to start your investment career in Real Estate.
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