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Why Real Estate Investment Is A Good Idea

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    Real Estate is one of the world’s most robust markets. Real Estate refers to property consisting of land and the buildings on it. This includes houses, shops, offices, and any building/land that you can purchase. Thus, the market for real estate is vast, and many people seek to make money by investing in it. Investing in real estate is one of the smartest moves an individual can make. Curious as to why you should invest in real estate? Here are some compelling reasons why you should.

    Material Assets

    One of the biggest reasons you should invest in real estate is that your purchasing assets are material things. When you buy a home, you can physically go to that property and acknowledge its existence. Unlike stocks, which are not tangible material items, your property will still be worth something no matter how bad the real estate market gets.

    Stocks have the potential to crash, leaving you completely penniless. While real estate purchases are not guaranteed to provide a return on your investment, they can be sold or used in other ways to recoup any loss.

    Value Over Time

    The second reason is that real estate tends to increase in value over time. While most stocks share this same characteristic, they are often more unpredictable and unstable. Because the demand for land keeps rising, and land that you own will continue to increase in worth throughout the years.

    This aspect allows people to feel more secure when purchasing real estate, as it is much easier to predict how the investment will grow. If you buy some land now, it could potentially be worth ten times its purchase price in the future.

    Tax Benefits

    Finally, the last reason you should invest in real estate is that you qualify for tax benefits. If you own a home, you can deduct mortgage interest and typically some state property taxes. Capital gain taxes are also typically lower than your tax bracket, around 15 percent, helping you save money.

    This money you save from a decrease in taxes can be used to reinvest in more real estate. If you keep this process up, you will begin to grow your real estate portfolio, giving yourself multiple options for your financial future.

    Professional Tax Consulting

    When you choose to invest in real estate, it is vital to your success to consult a professional and experienced real estate investment CPA. At The Real Estate CPA, we value your investment and help you make the best decisions financially to meet your investment needs.

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    Hall CPA PLLC, real estate CPAs and advisors, helped me save $37,818 on taxes by recommending and assisting with a cost segregation study. With strategic multifamily rehab and the $2,500 de minimus safe harbor plus cost segregation, taxes on my real estate have been non-existent for a few years (and that includes offsetting large capital gains from the sale of property).

    Mike Dymski - Business Owner