Real estate is an interesting sector of the market to be invested in. There are a variety of ways to make money from a real estate investment, and even a novice investor can learn how to get the best return on his or her money. What are some good reasons to invest in residential and commercial properties?
1) You Can Keep The Property In The Family Forever
When you pass on, you can give your houses or commercial properties to your heirs to continue making money for your family. If your heirs don’t want the properties, they can sell them for a hefty profit. Having all of the debt paid off will be a great asset for your loved ones. They can use the property without over-bearing payments or sell it for money that might be needed elsewhere.
2) Tax Rates Are Lower On Rental Income
Rental income is taxed at ordinary income tax rates. In addition, capital gains taxes only apply if you sell properties outside of a retirement account. The best thing to do is put a portion of your real estate holdings inside of an IRA and avoid capital gains and income taxes until the money is taken out in retirement.
3) The Housing Market Is Priced For Growth
Housing prices are low and interest rates are low as well. This means that you should buy now when houses and other real estate are priced below market value. In a few years when the market rebounds, you will be in prime position to make an easy profit.
4) Make A Passive Income
Rental income is income that you don’t have to do anything to earn. All you need to do is find a tenant and that tenant will write a check to you each month simply to occupy your rental space. To make things even better, commercial tenants are usually required to sign leases for up to three years or more.
How Can You Get Involved In Real Estate?
Getting involved in real estate is as easy as finding a property that you want to buy and having a plan to make money from it. You can sign up for an investor newsletter that will help you determine how to make the most from your investment or find investors who are willing to help you fund your first housing purchase. Staying informed is the key success with you investments.
Real estate is a sector of the market that you shouldn’t ignore. If you are looking to make a passive income that can be used today or for your future retirement, consider investing in real estate.
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