When you invest in real estate, you have to have a long term vision and patience. Unlike buying stock which can be readily purchased and sold, investing in real estate does not afford a quick sale. While it is true that in years past, people were able to flip properties and make fast money in real estate, for most real estate investors the idea is to buy and hold real estate. Some investors in real estate will benefit from federal income tax breaks and other investors in real estate can hold a piece of property and later sell it and buy other property while deferring the payment of any federal income taxes until the real estate is cashed out. Real estate is not a liquid investment and you may need to consider a long term strategy or option even if you are considering a shorter term investment in real estate. Read our articles on investing in real estate and learn about problem tenants and how to handle them. Learn about finding the right team to help you navigate the world of real estate investing. And, finally, learn about how to structure your investments, insure your real estate investments and minimize your federal income taxes.
After gaining an investment property from a divorce, this reader asks whether it's better to sell the house or continue to rent it to cover expenses. Q: I got divorced last year and from the divorce, I got a house in California. The value of the house is about $600,000. I owe about $250,000 on [...]
Navigating capital gains tax on the sale of an investment property can be complicated. Consult a tax professional to fully understand your options and their consequences. Q: We bought a rental property (it’s a condo) in 2005 for $80,000. We rented it out until 2016. Our daughter moved into this condo last year after she [...]
Wondering what threats await real estate this year (and in the future)? Scott Muldavin, Chair of the Counselors of Real Estate (CRE), ran down his annual list at this year's National Association of Real Estate Editors (NAREE) conference, in Denver. This story features the first 5 threats to real estate. Real Estate Threat #1 - [...]
With banks and bonds paying next to nothing in the way of interest on savings, more retirees are wondering if they should use their retirement savings to invest in real estate. These seniors are wondering if they should use their $1 million in retirement savings to invest in an income-producing property. There are some risks, [...]
Real estate investors often have a lot of questions once tax time rolls around — especially if they're new to the game. That's because while there are a number of tax breaks available to investors, like the depreciation deduction, Uncle Sam will also want its fair share of the income generated from investment properties. Real estate [...]
Here are three quick tips on making a smart real estate investment. Look for properties where you can build in value. I published a story on my MoneyWatch blog about properties you can purchase for $40,000, or about the price of a luxury car. These homes aren’t necessarily in move-in condition, but they’re not falling [...]