Buying as an investor
The founders of Golden Realty & Investments are skilled in real estate investments as well as the sale of owner occupied homes. We’ll gladly discuss the pros and cons of a given property and how it might benefit your investment portfolio.
If you're an investor, you see the world differently. It's not about how beautiful a property is or where the sofa goes, but about how much rent the property can make and how well the property does at resale.
Investing in a real estate property offers unique benefits:
- Leveraged money. While you may only put 30% down on an investment property, if the property appreciates, you capture the rewards on the appreciation of 100% of the property's value. By leveraging money, you may be able to accumulate wealth faster.
- Appreciation. As long as the population in the US increases, it will put pressure on real estate prices. Real estate has long been recognized as a hedge against inflation.
- Cash flow. A good real estate investment can pay for itself or "cash flow," meaning that monthly rent exceeds the monthly costs of ownership. Investors look for properties that cash flow, or have the potential to cash flow or appreciate quickly.
- It's real. Few things other than real estate and precious metals are such tangible investments. While in the stock market you invest in the future of a company, when you own real estate you invest in the floor, walls, ceiling, plumbing, and electrical systems of a home.
- Tax benefits. Many of the costs of buying, selling, preparing, and repairing real estate are tax deductible. (Consult with a tax advisor or CPA for the specifics of your situation.)
- 1031 exchange. While it can be complicated, and you must know the details before trying a 1031 exchange, there are certain circumstances when the IRS may allow you to shelter the gain of the sale of one investment property so long as those funds are put toward another "like kind" real estate investment. (Consult with a title company or 1031 exchange intermediary before attempting a 1031 exchange.)