Will putting your money in real estate be worth it? Are your chances of gaining cash higher with a real estate investment? These are just a few of the plethora of questions that people are asking about real estate and investments. In general, making an investment in real estate isn’t much of a gamble like investments in bonds, mutual funds, or stocks. If you put it into perspective, the real estate market is like gold in some ways as the value of real estate grows over time.
10 reasons why you should make investments in real estate
- You get predictable cash flow with real estate – basically, cash flow is the net spendable income from the investment after all deductibles. With the right real estate investment in Myrtle Beach, the investor could get as much as 6% better cash flow.
- There is constant value appreciation in real estate – according to data released by the National Association of Realtors, appreciation levels for real estate remained constant even through the economic slide last 2007. This basically indicates that there is strong and consistent growth in real estate and it’s not stopping any time soon.
- You can use your real estate investment as leverage – one of the prime benefits that you’ll get out of investing in real estate is leverage. When you have built up an equity position in your investment, you are then able to leverage that investment into cash. This can be done in two ways. You could consult your real estate agent about this for further information.
- Equity builds up over time – once you reach the point completing payment for the principal amount of the mortgage, equity is also built up along with it.
- Improvements make the value even greater – one of the reasons why real estate is so attractive among investors is due to the improvable value. Take house flippers for instance. They buy a home like any ordinary person would and improve everything from top to bottom. The result is a higher value than what they initially bought the property for.
- Real estate is good for retirement – on average, mortgages take at least three decades to complete. During the said time, you could consider your property investment like a savings program. As the mortgage is paid off, cash flow increases and so does the value of the property.
- Real estate is tax-deductible – real estate can reduce your taxes overall. There are some expenses in real estate that are tax deductibles.
- Real estate has a lower tax bracket – the taxes on your real estate investment is significantly lower than your personal tax bracket. If your property is sold within a year after purchase, capital gains tax rates are usually at 15-20%.
- Real estate is depreciable – the tax code allows for depreciation of the value of your investment property. Although the true value of your property appreciates, your realtor could report a lower income for tax purposes.
- Gains from real estate are deferrable – it is indicated in the tax code that the gains of a property being sold can be transferred to a new one that is being purchased. This basically defers the supposed taxes on the gains of the sale. For more information about real estate, contact the experts like Full Potential Real Estate, LLC.
Looking for a property in Myrtle Beach? Ask help from our reliable buying agent at Full Potential Real Estate, LLC.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577