ATTENTION INVESTORS!
- The power of leverage: When you invest $20,000.00 in real property and receive a mortgage for $80,000.00 to complete the purchase of $100,000.00. The appreciation and returns of the investment will be based in the 100% of the investment. That way, you are using other people’s money (mortgage) to profit in your whole investment. There is not another investment that can offer such returns!
- Appreciation. The longer you hold a property greater is the return.
- Roof over the head. A basic necessity. When you invest in another type of investment vehicle you will have to allocate funs to pay a mortgage/rent.
- Renting your property. The income produced will cover expenses and extra profits for you. This way, is another way to make money using other people’s money, (your tenant). During this time, you will reduce the debt, increase your equity and the property will reduce the debt balance. The property will be increasing equity and appreciation.
- Taxes benefits.
- Deduction of the interest paid in the mortgage up to a limit of $1,100,000.00 mortgage balance. This could be a combination of two mortgages in the owners’ primary and secondary homes.
- Owners’ occupant can deduct the mortgage insurance costs from their annual income tax returns.
- Owners’ occupant can deduct the loan’s points paid at closing. Even if it was a sellers’ contribution. This is another way to built income using others people’s money.
- Depreciation deduction in a Real Estate investment.
- Lower Capital Gain tax bracket than ordinary income.
- Taxes exception provision in Capital Gains for owners’ occupants.
- Real Estate is a tangible asset.
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