Is A Building Lot A Sound Investment Presently?
The recent market difficulties has sent a shock wave through the minds of many real estate investors and caused them to doubt if they should buy land anymore. There are a few guidelines for investing in land and they are easy to remember and apply.
Getting a loan may make things easier on your wallet but involving the bank only costs you more money in the long run. In other words, using your cash will help keep your bottom line stable and secure, without putting your assets on the line. To have a home that is paid off is the utmost in stability and mental ease, because you do not have to worry about the possibility of losing your property. I realize this is not an option for most people, so maybe consider it as an ideal more than anything else. Putting all of your savings toward real estate is a great way to offset any taxable income on your net sheet at the end of the year as well.
Besides the fact that when you buy a home outright, you can always rent it and you will have a nice littler income generated from it. If you earn a six figure income and want to avoid paying the full amount of taxes on it, you can reduce your tax liability on your net sheet by buying real estate. If you use the tax laws in the most advantageous manner possible, you can simply take your pre-tax income and spend it on real estate, which will offset your tax liability on your net sheet. Consulting with an accountant can help you understand this idea more clearly.
Buying building lots for investments can be more risky because their is an over abundance of inventory in most U.S. markets, due to overzealous lenders and developers during the boom earlier in the decade. After this inventory gets absorbed, building lots will again be a very good investment. With the long term in your plans, buying building lots and holding them is a great idea, and only if you can do it without involving the bank, otherwise stay away from them for a few more years.
Keep in mind that the bank is not your friend when buying real estate, so buying with cash is always the best option. There are other options for getting rentals from the land you own, like doing joint ventures with a local builder, so keep your eyes open and make sure to cover your own assets in all of your business dealings. - 23196
Getting a loan may make things easier on your wallet but involving the bank only costs you more money in the long run. In other words, using your cash will help keep your bottom line stable and secure, without putting your assets on the line. To have a home that is paid off is the utmost in stability and mental ease, because you do not have to worry about the possibility of losing your property. I realize this is not an option for most people, so maybe consider it as an ideal more than anything else. Putting all of your savings toward real estate is a great way to offset any taxable income on your net sheet at the end of the year as well.
Besides the fact that when you buy a home outright, you can always rent it and you will have a nice littler income generated from it. If you earn a six figure income and want to avoid paying the full amount of taxes on it, you can reduce your tax liability on your net sheet by buying real estate. If you use the tax laws in the most advantageous manner possible, you can simply take your pre-tax income and spend it on real estate, which will offset your tax liability on your net sheet. Consulting with an accountant can help you understand this idea more clearly.
Buying building lots for investments can be more risky because their is an over abundance of inventory in most U.S. markets, due to overzealous lenders and developers during the boom earlier in the decade. After this inventory gets absorbed, building lots will again be a very good investment. With the long term in your plans, buying building lots and holding them is a great idea, and only if you can do it without involving the bank, otherwise stay away from them for a few more years.
Keep in mind that the bank is not your friend when buying real estate, so buying with cash is always the best option. There are other options for getting rentals from the land you own, like doing joint ventures with a local builder, so keep your eyes open and make sure to cover your own assets in all of your business dealings. - 23196
About the Author:
The author enjoys writing articles about boise idaho real estate agent & homes in boise idaho. Click on the above links to learn more about these topics!
posted by X - Men @ 1:54 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home