What are your financial goals? If you are like most people, you may feel like at the rate you are saving you may never be able to stop working. There are numerous ways to save for the future and talking to wealth or financial advisor is a good step in planning for your future. Real estate is absolutely one way to reach your financial goals. How you may ask? Here are 4 ways that buying Boise real estate can make you rich by building wealth over the long term. These are not “get rich quick” schemes, mind you. If you think of real estate as a long-term investment instead, it can literally change your life!
- Huge tax benefits. You may be able to deduct the interest paid on the mortgage and on all the real estate taxes just as you do on your primary residence. Additionally, some of the expenses may be tax deductable such as new roof, furnace, etc. The major difference between your primary residence and income property is you may be able to depreciate the property over 27.5 years period. This may make a vast difference on your personal taxes, depending on what tax rate you fall in. Another benefit is the 1031 tax deferred exchange, which allows you to sell an investment property and purchase another property, and not be tax on the gain until you sell the second property. As with any tax related issue, please check with your accountant or tax attorney to confirm which tax benefits will apply in your situation.
- Balance your investment portfolio. It is always good advice not to put all your eggs in one basket and real estate can be a profitable portion of your long-term investment portfolio by using “good debt” that actually MAKES you money instead of costing you money.
- Long-term growth on Investments. This is the really big one that can change your life. By having and holding on to properties over the years that you have been using as a tax advantage, the property has been paying for itself with the rental income, and the value has been increasing over time.
Buying investment property in Idaho can make you money and with the prices of Boise real estate being so affordable, now can be a great time to start your path to financial freedom. Just like everything worthwhile in life, it takes hard work and perseverance but in the long run, it will be well worth it. If you are considering investing in real estate in other Idaho communities, you can now see mls listings by community.Kevin Hughes