Power in Today’s Real Estate Economy
Are you looking for a good investment property? This could be a piece of
land to build on, an existing structure for rental purposes, or a home
or condo that you will occupy. Yet, any of these purposes may lend
themselves to investment advantages if you plan to build up some equity
over the next few years before selling the property for a profit.
If you do plan to resell the property within a relatively short amount
of time, you will want to keep a few guidelines in mind when you go
shopping for your property purchase.
1. Location, location, location. Yes, as most realtors will agree,
location is everything. Of course, that is not to say that some people
have not turned around a house in a low-income neighborhood and made a
nice profit on it, but for the most part, you want to buy something in a
desirable neighborhood that will attract a good selection of buyers.
Check neighboring properties that have recently sold to determine a
reasonable selling price for the property you are interested in. If
property values have been declining, chances are you could have problems
selling your house for a nice profit in the next few years.
2. Consider rental property. If you have the means to supervise and
maintain a rental unit, this can be a great way to build equity for the
future. The renter(s) can pay the mortgage payment, and after selling
the property, you will reap all the profit. But if you are unable to
spare the time to supervise and care for a property that you don’t
occupy, this may not be a good option for you.
3. Get a fixer-upper. Again, this is only for those who know how to do
the construction work that will be required to renovate the property. Or
you might have connections in the construction business with those who
can provide materials at cost and labor at reduced rates. Even a few
cosmetic improvements can sometimes bring in thousands of dollars more
when a property sells.
4. Use your property as a tax write-off. Many homeowners use the
interest on property payments as a tax deduction. This can save you a
substantial amount of money when filing your annual tax return. Property
improvements sometimes can be deducted, also.
5. Deduct home office expenses. If you buy a property and use one or
more rooms for a home office, you may be able to deduct some of the
overhead of maintaining the property as a home business expense. Check
with a tax accountant before purchasing a property if this is your aim,
Let your property work for you when you purchase with a view to
maximizing your financial investment, both now and later.
This article was written by Dion Smith of The Westside Group, offering
Brentwood California real estate and more. The Westside Group also
provides a wealth of free resources for any home buyer or seller.
Contact us today to receive your FREE HomeBuyer or HomeSeller Handbooks.
Reproductions of this article are encouraged but must include a link
Keywords and Misspellings: refinancing refi
home loan homeloans refinansing investmint investing intesters