Investors

|

|

There are so many investment opportunities here in the Golden Isles ranging from single-family homes and condominiums to multi-unit buildings, land and commercial properties.  Of course it can be said that any property purchase, primary residence or a 4-unit rental building, is an investment.  One thing to keep in mind is that real estate has always been a sound, long-term investment.  Notice I said long-term.  I think a good chunk of our current economic crisis with the real estate market at its root stems from the fact that as a nation, we seemed to have lost sight of the ‘long-term’ aspect of real estate for what looked like quick and easy money.

With good planning, real estate investments are still sound assets.  Just as with any investment, it should produce maximum benefits for your investment dollar.

Let’s face it. Investors invest to make money. With that being said, the key to investing is understanding how to maximize your investment dollar by making well-thought out and informed purchase decisions, selling decisions, and most importantly, management decisions during your ownership.

You can look at what qualifies as investment property from many angles. In real estate, we tell people everyday not to throw money away on rent and to invest in their own home. Most people consider their primary residence as their single largest investment. Primary residences, however, fall under a different category since we do not own the property for the sole purpose of investing, but also for daily use.

But what about second homes? Vacation homes? Many of the properties in our area are secondary residences for people out of town and out of state. Some purchase and own these properties strictly for their own personal use. Others purchase and own property strictly as rental property. Many own it for mixed use, using it for a few weeks out of the year and renting out the rest.

It’s important to understand that how you use the property can set up your tax status when tax season comes (See Depreciation) and especially when it comes time to sell (See 1031 Exchange).

Of course, there are those who prefer to dabble in bigger game: multi-unit rental properties and commercial properties. Here, it’s not so much as understanding usage — that’s pretty clear. What is important is to strictly analyze the property’s viability as a good investment before the purchase, monitor income and tax benefit performances as equity builds during ownership, and knowing how to sell the property with maximum gain and minimal taxes.

Anyone with experience in commercial property should already know what I’m talking about… but the interesting thing is that this is also important for smaller investors with rental property and the same math applies! Big or Small, every investor in any income producing property should know the basic ground rules for analyzing property BEFORE they purchase it and DURING their ownership.

For more detailed information on these topics affecting Investors, please continue here:

• The 1031 Tax Exchange - What every Investor needs to know about this great money saving feature available through the IRS
• Depreciation – Are you taking the full amount allowable by the IRS on depreciation from your investment property?
• Your Retirement Fund – Learn how your IRA can help you build wealth for your future through real estate!
• Income Producing Property - Whether you own one rental property or participate in the Big Time of Commercial Property you need to ensure that you’re putting your money into a sound financial investment. I’ll even help you with the math…

Back to Top