Purchasing real estate has historically been one of the most prudent and financially successful strategies employed by investors.
Over the last 100 years, property investors have enjoyed annual returns in excess of 11% with a lot less volatility than one would suffer if your money was invested in the stock market.
And since 1971, REITs have outstripped the S&P 500 by a significant margin.
However, property investment, whether it be for capital gains or monthly cash flow, can be a nightmare for novice investors. Unscrupulous sellers, dodgy developers, and less than honest agents can rob you of your hard-earned money.
So, what are your options?
Find a Trusted Advisor
Investing in real estate is a lot less risky if you have access to an advisor with experience and knowledge to help you assess your potential property deal.
Better yet, approaching an advisor before embarking on your quest for the perfect property will give you the best chance of securing an investment that will pay dividends for years to come.
If you have your own business or wish to start a business, your property portfolio can be used to minimize your taxes and correctly structured, the deal can pay for itself many times over.
Real Estate Investment Advantages
We believe that real estate should form part of your core investment portfolio. Depending on what your long-term goals are, investment property provides a solution that can fit into almost all wealth-planning scenarios.
Property investments provide you with the following benefits:
Tax-advantaged Legal Structures
Tax exemptions, to which investors are entitled, allow rental property owners to write off large amounts of tax.
The IRS offers tax breaks for various expenses such as depreciation, insurance, maintenance, repairs, travel expenses, legal fees, and property taxes. Correctly structured, you will receive huge benefits which you would possibly miss out on without the right advice.
Property investors are also entitled to lower tax rates.
However, to enjoy the benefits of these tax breaks, an experienced accountant, with an intimate knowledge of tax law, is a vital partner in your financial team.
Regular Cash Flow From Long-term Tenants
If you are concerned about inflation, and you should be, then an investment in real estate can provide you with a hedge against rising prices combined with capital appreciation of the underlying asset.
High Cash Returns Through Legally-required Dividends
Investments in REITs (Real Estate Investment Trusts) will provide you with a regular income from dividends. Selecting the correct REIT for you is critical to ensure that you enjoy the worry-free benefits of this type of investment.
Liquidity from REITs
As REITs are traded on exchanges in the same way as stocks, you can access your money in an emergency or take advantage of high returns on your investment.
Property has always been seen as a hedge against inflation. Over time, the value of a property portfolio increases, providing you with a capital appreciation for your benefit or that of your family.
Whether you’re new to property investing, or an experienced real estate investor with a portfolio of properties, our advisors can assist you. Contador America has over 40 years of experience providing our clients with the best financial and real estate advice.
Experienced Real Estate Investment Advisors
Moses Nae, CEO of TaxLeaf, Contador America, and the inspiration behind MiamiMoe, a business focussed on the Miami music industry, is passionate about helping investors and entrepreneurs find the right investment solution for their unique situation.
Contador America is also uniquely placed to help identify the perfect investment property solution to suit your financial goals and budget.
To help you learn more about how Contador America can assist you with your real estate investment portfolio and tax structuring, stop what you’re doing right now and call us now to secure a FREE 30-Minute Consultation with one of our business experts, where we will explain how you can make money by investing in real estate.