Investing in real estate is a huge step in your life. It is a great way to boost your retirement portfolio and get extra tax benefits, but it can be a hard step to make depending on your nerves. While there is a lot that goes into real estate investing and you will have tough days, there is also a lot of great benefits that you can get from it. Today, I am talking about just that! Below, I have listed off a few benefits of investing in real estate.
A steady stream of income
Of course, purchasing real estate takes money out of your pocket, but once you get a tenant settled in, the income starts flowing back in. Always make sure you are charging enough to cover your mortgage payment, insurance, and any other mishaps such as leaks, storm damage, break-ins, etc. According to Equities, “Passive income real estate investing is one of the most popular ways to invest in the real estate market. It is called passive income because it is a property which generates income for the owner without the owner having to be hands-on in the process. Passive real estate investment is a great tool for creating a steady stream of income, producing retirement funds quickly, and retiring earlier than expected. Not to mention, having passive real estate income after retirement will help you to live a fuller life, thanks to the added income. The first step is to invest in an area with a high potential of increase in value. Then to take a low interest loan against the property. The second step is to set the rental price. Taking under consideration the following charges: Mortgage, taxes, insurance, maintenance and property management services fee. The rental should cover the charges plus your monthly profit on your investment.”
Engineered Tax Services says, “Real estate investing can be a risky venture — especially in today’s economy. Engineered Tax Services (ETS) works with property owners to strengthen their investments and increase their return on investment through our specialty tax services. As a commercial property investor and owner, there are several IRS-sanctioned tax benefits within your reach designed to uncover hidden value and profitability within your investments. We specialize in assisting property investment firms and their CPAs in identify areas of tax saving opportunities.” Engineered Tax Services says that there are ‘hidden treasures’ buried in your real estate investments, and that they are able to help you discover those treasures through engineering-based tax studies. Some of those studies are EPAct Tax Deductions, Cost Segregation Studies, Reserve Studies, Disposition Studies, Historical Tax Credits, New Market Tax Credits, and Insurance Replacement Appraisals. While you technically could figure out the tax benefits on your own, you definitely want to hire a company that is knowledgeable in tax benefits to make sure that you are getting the most benefit from your investment. Founded by CEO, Julio Gonzalez, Engineered Tax Services is a licensed engineering firm that focuses on federal, state, and local tax benefits. Mr. Gonzalez’s goal was to bring specialty tax engineering services to mainstream America and to be a resource to the CPA community so that the services that Engineered Tax Services offers could be available to all real estate investors, no matter how large or small. Now, Engineered Tax Services has become the leader in these services. When you work with Engineered Tax Services, you get access to over 100+ years of combined experience, fully circular 230 compliant, experience from fortune 100 companies, broad service offerings in order to maximize client ROI, and top attorneys, CPAs, engineers, scientists, congressmen, and more.
Investing in commercial real estate has reduce risks because the people you rent your building (or buildings) out to will be invested in their own business, and the front of that is your building. They will want to keep the building looking nice, clean, and respectable. This is a great thing to you because you know that you will not have anyone destroying your building from throwing parties, etc. Longer lease terms is also preferred with commercial real estate, which is a benefit to both you and your tenant. In addition to better tenants, Forbes says, “you can invest in real estate today and own both residential and commercial property, even foreign real estate, using real estate exchange-traded funds (ETFs). In a well-designed retirement portfolio, a small holding in real estate acts as a hedge against inflation that generates income, similar to bonds but with the inflation-dampening effects of commodities investments. The bottom line is that you can be a real estate kingpin without taking out a loan or visiting a single office building under construction. More people should own at least some real estate beyond their own home mortgage, and ETFs offer a way to do so at minimal risk.”