Buying Selling or Investing In The American Dream
Now the question that I get most often is how’s the market? And specifically, lately, I’ve gotten a lot of people because markets seem to be fluctuating and so many different residential areas are skyrocketing. That I’m getting investors to ask how long will this last and what are the best advantages of buying real estate and I have found that there are four big advantages to buying real estate as a hold strategy. Now you can buy and sell you can flip you can look at different types of property from commercial to residential but today we’re going to focus on the big four items and those four items when you think about investing are going to be appreciation, depreciation, cash flow, and tax write-offs let’s take those in no particular order.
No. 1 Appreciation
Appreciation is when you have a property that will gain in value and so most real estate if you’re looking at it as a long-term hold strategy, not a year or two but five-ten plus years is going to increase massively in value depending on the markets some properties will double you look to buy a million dollar property 10 years from now it’s going to be worth 2 million… That is the appreciation we can talk about that in multiple markets.
No. 2 Depreciation
Depreciation well it sounds like the exact opposite but if you buy an asset for tax purposes. Real estate is considered an asset if you buy an asset you get to depreciate that asset over the course of time real estate depending on the type is done over 27 to 39 plus years which means you can take the value directly off your taxes. It’s a huge boon and a great benefit you get to take that against your income.
No. 3 Cash Flow
You get to look at cash flow if you have a renter a tenant a commercial tenant that rents your building they are paying for the mortgage and giving you profit every month allowing you to take advantage of the first two and this third asset which is as we mentioned cash flow.
No. 4 Write-Offs Tax
Write-offs you’ve got an asset that you put expenses into you to change out the roof you change out the windows you do marketing you have to take a business trip to go to a seminar to learn more about managing property all of these are business expenses that you can write off against your taxes those are four big wins.
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