Thursday 11 January 2018

Some Good Reasons To Get Started With Real Estate Investment

By Scott Gray


Are you looking towards retiring comfortably when the time comes? Do you want to quit your mundane job so you can work on more fulfilling endeavors? No matter what your reasons are for taking interest in entrepreneurship, real estate investment in Seattle WA can help you attain your financial goals sooner than you think.

Most people choose to invest in property simply due to the positive cash flow - the extra money on top of the amount used to cover operational expenses. This starts flowing soon after you've acquired your first rentals, and will continue doing so for as long as you can maintain a healthy tenant occupancy rate. It goes without saying that this additional income will definitely make a difference in your bottom line, your current financial position notwithstanding.

Property is one of the most tax-efficient investment options out there. Although its value keeps growing over time, you won't be required to pay capital gains tax until you decide to sell. And if you've held the property for more than 12 months, you'll only be taxed on half of the profits. Not to forget that there's no limit to how much one can take advantage here.

One of the best parts about owning property is that you become your own boss. Although you can't control economic developments or demographics, you can do more things to your investments to improve their value and performance, something that's not always possible with other assets. Since every investor is different, the ability to take charge of management is crucial in helping you reach whatever goals you were aiming for when you started out.

Most governments provide generous tax incentives to spur investment in real estate. When preparing your property's income statements, you will be allowed to write off its annual depreciation charge against tax, in addition to the regular operational costs. To know what exactly qualifies as a deductible expense in your jurisdiction, consult a local tax professional.

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.

In most markets, property tends to rise in value over time, but without the volatility commonly experienced in the share market. You can thus rest assured that your assets will be worth more than you paid for them in years to come. Additionally, income from real estate tends to cope better in inflationary periods, allowing you as the investor to maintain significant returns.

There's no doubt that the housing sector presents lots of opportunities for individuals seeking to grow financially. However, this will only happen if you understand the risks and rewards involved, as well as how to nurture your business as it matures. So make sure you approach other investors for advice before you set forth with purchasing your first piece of real estate.




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