Financial Planning and Real Estate
What does your IPS look like?
Does it contain fixed income, emerging markets, growth, value and Real Estate?
If not, find a way to incorporate more real estate into your portfolio because at
the end of the day the ROI is profitable if positioned properly. Whether you
are savvy or not, team yourself with a reliable investment advisor and a modern
day real estate professional to earn a return on your investment. Real Estate
is the only investment that provides you the flexibility and advantages of:
- Cash Flow-your profit is a result of what’s left after any repairs, mortgages, taxes and insurance are deducted from the rent you collect.
- Tax Benefits-Federal tax law allows you to deduct a portion of your property value from your income. If you want to reduce your tax burden then get some rental properties. Rental income isn’t subject to self-employment tax.
- Leveraging OPM-if the Banks are
lending then it’s part of the economy to leverage other people’s money. You
apply for a mortgage, you’re approved and you pay it back over an extended
term. If structured properly there could be no money out of pocket!
- Principal Pay Down-granted you are paying back your loan with interest attached, you are also chipping away at your principal, giving yourself the opportunity to own a valued asset free and clear.
- Appreciation-although, many have recently been burned by market volatility, real estate should be treated like a long term investment as it is going to appreciate in value.
0 Comments