Housing and Real Estate

Whether you plan to buy real estate for personal use as a dwelling or simply in the hopes it will appreciate in value, you will find there are tax advantages regardless of the motivation.

However, by far the greatest tax advantages associated with real estate is when approached as an investment for the purpose of renting to a tenant. For whatever reason, the IRS looks fondly upon real-estate investments when it comes time to even up with Uncle Sam.

Interest
Savvy landlords don’t purchase their property outright, even if they have the resources. It’s a better inflation hedge and tax benefit to tie the property to a long-term, fixed-rate mortgage.

From a tax perspective, all mortgage interest paid on the loan is deductible, as is any interest charged on a credit card used to pay for goods or services associated with the rental activity. Depending upon the purchase price and loan length, simply deducting mortgage interest could be huge help.

Maintenance and Repair
Any amount you spend on repairing, maintaining, or improving your real estate investment is tax deductible. Whether it be water damage in the basement, new appliances for a tenant’s kitchen, or removing a tree leaning in the wrong direction, any expenses you incur for the purposes of keeping your property in prime rental condition are tax freebies.

Also deductible is the mileage you put on your vehicle in execution of landlord duties, whether it be to the hardware store for supplies or across the state to meet with a tenant. At more than fifty-cents per mile, this deduction is a valuable one. (more…)

Commercial real estate are considered the best option for people looking to invest. A recent economic downturn affected the real estate industry in 2007 is a reminder of how things can go wrong when investors are not well prepared. However, there is always a gamble promising rewards when investing with real estate companies. It all starts with knowing how to choose a real estate company.

Before getting into commercial real estate, you must first learn the nature of the market. Learn the basis of this business will help you make the right decision in choosing a commercial company real estate. After penetration of many in the business, you need to learn the value of the location and visibility of commercial properties, the marginal benefit of site improvements, the bill of the average daily traffic and the availability of infrastructure support the business.

It’s easy to make a call on commercial real estate investments if you think like a business owner. As a business owner, you may ask if you may be starting a business in the said location. Is there a market for it? If I am a provider of entry for other businesses, is the location accessible to the chosen supply chain? Understand the basic principles of the market and its interaction with high finance and other markets will help build their investment ideas and find the commercial company that will support real estate investments.