Kamis, 01 Februari 2018

What Benefits Can You Get From Real Estate Investment

By Scott Gray


Are you aware of the benefits you stand to gain from investing, but just don't know where to start? Well, if you currently own a home, it's safe to say that your residence represents more than 50% of your net worth. So why haven't you explored the financial rewards you could attain from real estate investment in Seattle WA?

As is the case with shares that yield dividends, properties can also provide a steady flow of cash. This will be much higher than what you would get from the former and, should you choose to outsource the management role, no input will be required from you whatsoever. As for what to do with the cash, it's all up to you to decide what makes the most sense for your bottom line.

The value appreciation of your investment property will be sheltered from the taxman until you cash out. More importantly, you'll only be required to pay taxed on 50% of the total profits made during the sale. Since there's no limit to how much one can shelter, this benefit compounds quickly when you invest in several properties, giving you more fuel to grow your portfolio.

When you invest in shares, the value of your assets is directly dependent on the actions of the people running that company. This introduces an element of uncertainty, since you can't really tell if they have your best interests at heart. In contrast, real estate investments are directly under your control. With good management of your portfolio, you can tangibly improve its value and build wealth, something that's virtually impossible with shares and bonds.

Real estate is a sector that offers investors some incredible tax benefits. From mortgage interest to insurance premiums, there's a handful of expenses that you'll be allowed to deduct from your gross income to lower your tax bill. Ultimately, this is something you want to discuss with a professional before taking advantage of.

Since real estate is a hard asset, financing is readily available. This means you could pay for your first property using a mortgage, use the rental income to make repayments, and still have enough left to finance the down payment on your next investment. This is also known as leverage, a trick commonly used by investors to amplify the returns they get from their assets.

Investing in property can help you future-proof your portfolio's wealth-building capacity. The assets will keep growing in value as time goes by, but what really makes a difference is the fact that income from this sector generally rises in tandem with inflation. This improves your ability to navigate risks, which in turn guarantees your profitability over the long term.

Without question, property can be a great long-term investment for anyone looking to improve their financial future. Still, you have to make wise decisions and put in a lot of hard work before you can reap any rewards from your investment. It would thus make sense to seek counsel from a more experienced mind before getting started.




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