We all, at one point or another, think about that day - retirement day. We invest in a 401K or an IRA and save, save, save. But wouldn't it be nice to have something making money for you when you're no longer at the grind? A portfolio of investments should be just as important to you as your 401K, and real estate should be a part of that. According to Entrepreneur, here are five reasons why.
1. In real estate your return on investment is incredible. While the market does fluctuate, it is inevitable that your property value will increase, especially in Southern California. With rental prices on the rise, you can rent the property to cover the mortgage. Later, you could even consider a 1031 exchange or installment sale to lessen your tax liability.
2. If you leverage your capital, depreciation and mortgage interest deductions can make this cash flow tax free.
3. Depending on your classification and income, there's a possibility your rental property will give you an overage of tax deductions you can use against your income.
4. Certain personal expenses pertaining to maintaining the property can also be deducted! This includes travel expenses to check on your properties and payments to someone who may manage the grounds for you.
5. It forces you to have a retirement plan. Once you purchase the property you are committed. You can come up with every excuse in the book to spend your savings, but once you purchase property you're committed.
It takes long-term investing to get to a point where you can be comfortable retiring. Purchasing and renting out property is a long-term investment that can help get you there...with a few tax incentives along the way.
Author:Kurt Galitski DRE 01348644 Phone: 714-957-6677 Dated: December 20th 2016 Views: 18 About Kurt: After 15 years of founding and running a successful boutique real estate office in Costa Mesa as a l...
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With seven consecutive years of five-star status in Orange Coast Magazine, The Kurt Real Estate Group is among the elite. No matter where they’ve gone, they’ve set record sales. Whether you’re a buyer, seller, or investor, Kurt and his team work diligently, honestly, and with the utmost professionalism and are passionate about helping you achieve your real estate goals.
Kurt is ranked among the top two percent of Coldwell Banker agents nationwide. Kurt’s experience investing in and flipping homes and his connections with the Hollywood Film Industry give him an unparalleled edge and keen insight into market trends. The opportunity presented to you in working with Kurt is why The Kurt Real Estate Group is recognized as one of the top real estate teams in Orange County.
"My family recently worked with The Kurt Real Estate Group in the marketing and sale of our family home in Costa Mesa. We interviewed 14 firms and ultimately selected Kurt and his team based on the quality and professionalism of his group and their out-of-the-box approach to marketing our home. Kurt was always available for a call and provided us with regular, thorough updates, making what can be a challenging process an enjoyable experience. Kurt had to navigate...Read more on Yelp"