Are you tired of the poor returns or losses that traditional investments have provided over the last few years ? Maybe it is time to explore some of the benefits offered by investing in real estate in Bryan College Station. In this blog, I will discuss real estate returns vs. traditional investment returns, tax advantages and the control you can have over your financial future but please know I am “just a Realtor” and not your investment broker.
Returns: Real Estate vs. Stocks, Bonds and Mutual Funds.
Tax Benefits: What other investment allows you to make money, and the IRS allows you to keep more of it due to generous tax deductions ? Some of those expenses are advertising, depreciation, maintenance, insurance, interest, losses and repairs. Another top real estate investment vehicle is the 1031 exchange which allows you to avoid capital gains tax through the exchange of like-kind properties. To complete a 1031 exchange, a qualified intermediary will need to be used but, it is well worth the effort.
Leverage: With what other investment will a lender allow you to put 20% down and use the investment to secure the balance of the loan? Do you think that your lender would lend you money to buy $100,000 worth of Apple stock if you put $20,000 down? The great advantage of investing in real estate is that it allows you to build equity in a property, sell it and then use the equity and leverage to buy a larger cash flow property. A continuation of this process is what allows you to build wealth.
With the interest rates at an all time low and some nice properties on the market, the time to invest in real estate has never been better. Using a conservative analysis to calculate cash flow and not basing your decision on an increase in equity will improve your chances of being successful in the real estate investment market. For more information or help in finding a property call David Whitener at 979-587-9979.
David Whitener, REALTOR® – I never forget you have a choice