Asset Protection Today: Real Estate March 24, 2018
Real estate can be an excellent investment under the right circumstances. This includes both your primary residence as well as investment property. There are several factors to be considered when thinking about purchasing real estate.
Everyone knows the adage “Buy low, sell high.” That is excellent advice for real estate. Buying low requires patience to find the right property that can be purchased at a lower price. Selling high requires research into neighborhoods, house size, the age of the house you want to purchase, as well as other factors.
Additionally, there are differences between purchasing a house for your primary residence and purchasing one as an investment property. Some of the differences include tax implications, types of loans available, and how the property is titled. It is important to consider all factors involved and research the options available.
Two factors entice many investors to look at real estate as an option to diversify their investments: The first factor is that their investment can be leveraged—they can put down 20% or less and borrow the balance needed for the purchase price. Hence you don’t need 100% cash to make the investment. The second factor is the income tax benefit–investment real estate can be depreciated and interest expenses as well as maintenance and upkeep expenses can reduce or eliminate the income tax on rents received.
There are risks involved with any type of real estate purchase. The most important thing is to get advice from professionals before purchasing any property. Knowledgeable real estate agents, financial advisors, and home inspection professionals are invaluable for their help and knowledge. Understand what factors are involved in your decisions and what your long-term goals are before you make any purchase.
W.G. Alexander & Associates discusses the Veterans Pension in more depth, along with other assistance programs, during our free seminars every second Wednesday of the month at Independence Village of Raleigh at 2:00pm and 6:30pm. Register for our free seminars through our website at www.wgalaw.com, or call us at (919) 256-7000.
Attorney Bill Alexander of W.G. Alexander & Associates discusses these issues and more every Saturday morning on his radio program, “Asset Protection Today,” on TalkRadio 680 WPTF (AM), from 11:00 AM – 12:00 PM, and on Sunday morning on his television show, “Money Secrets with Bill and Mike,” on the CW (WLFL) at 8:00AM.