Tuesday, January 9, 2018

Why Real Estate Investment Should Be Part Of Your Portfolio

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.

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.

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.

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.

Although stocks and bonds can be bought using loans, such deals are always risky because there's no tangible asset to back up the debt. Investment mortgages, on the other hand, can be structured to offer lenders more security, which greatly boosts your borrowing power. This makes it possible to purchase more assets with less money and benefit from their growth, which is one of the most powerful tricks you could use as an investor.

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.

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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