Acquiring Building Lots The Safest Way!
Buying land used to be the most likely and preferred purchase that real estate investors made, but in recent years many have started to doubt the safety of land purchases. 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. By the "right way" I mean, with a high amount of cash down, if not completely paid off altogether. In times like these, being free of the bank is vital and offers the highest degree of freedom and stability. For many people, like young couples or people with low paying jobs, this may not even be an option. After achieving this monumental feat, realizing the freedom that comes from doing it, and avoiding the taxes that can prevent it can be a windfall.
Building a portfolio of properties that you own, especially without any bank notes, can add much needed income at pivotal points in your life, like retirement. 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. Using your tax money to purchase real estate, instead of simply paying it directly to the IRS, is easier than you might think, and will effect your net sheet in such a way that you will actually pay less in taxes. I do recommend sitting down with your accountant to outline the exact plan to do this as your first step.
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. Waiting on the extra building lots to be absorbed into the market may take time, but as soon as it happens the market will be a good bet again. 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. Making alliances with local builders, to construct rentals on your building lots and share in the income, is a super way to be creative and establish partnership avenues which will benefit you for years to come. - 23200
Getting a loan may make things easier on your wallet but involving the bank only costs you more money in the long run. By the "right way" I mean, with a high amount of cash down, if not completely paid off altogether. In times like these, being free of the bank is vital and offers the highest degree of freedom and stability. For many people, like young couples or people with low paying jobs, this may not even be an option. After achieving this monumental feat, realizing the freedom that comes from doing it, and avoiding the taxes that can prevent it can be a windfall.
Building a portfolio of properties that you own, especially without any bank notes, can add much needed income at pivotal points in your life, like retirement. 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. Using your tax money to purchase real estate, instead of simply paying it directly to the IRS, is easier than you might think, and will effect your net sheet in such a way that you will actually pay less in taxes. I do recommend sitting down with your accountant to outline the exact plan to do this as your first step.
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. Waiting on the extra building lots to be absorbed into the market may take time, but as soon as it happens the market will be a good bet again. 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. Making alliances with local builders, to construct rentals on your building lots and share in the income, is a super way to be creative and establish partnership avenues which will benefit you for years to come. - 23200
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