Property investments

Property Investments

As if this tepid recovery needed more bad news when author and investigative journalist Michael Lewis started his book tour about the rigged stock market.  The book reveals the discovery of underground high speed trading networks were traders were snooping on open trades before they hit the exchanges and taking opposite position for quick profit.

Yes, indeed the stock market is rigged and small investors who don’t have access to high speed trading platform will lose.  So, why not invest in real estate?  What are the advantages of investing in real estate?  Here are some:

  • Control – You have complete control of your investment when you buy a property.
  • Appreciation – With the exception of Detroit, properties have recovered in more than 48 States during the current recovery.  So, you can indeed invest in property for appreciation.
  • Tax Advantages  – Investing in properties has tax advantages as well.  If you use your property as a primary residence and sell it after it’s gained in value, you will not be subject to capital gains taxes.  In addition, the interest payments on your loan are tax deductible as well.

Types of Property to Purchase for Investment

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.

Give us a call when you are ready to start your investment career in Real Estate.


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