Billionaire Andrew Carnegie once famously stated that 90 percent of millionaires made their money by investing in real estate. Even for the average investor, real estate continues to be a lucrative opportunity that can help them create significant wealth in the future.
If you’re thinking about investing in residential or commercial real estate, take a look at these excellent benefits:
1. Year-round income
Investing in real estate requires a long-term commitment for results to show. Residential and commercial properties in high-income and emerging neighborhoods have the potential to generate significant income through rent.
To ensure your net cash flow is positive, always take expenses such as associated legal fees, maintenance, and other unexpected costs into account.
2. Tax breaks and deductions
Real estate offers excellent tax benefits because you don’t have to pay taxes on gains from investment properties. Depending on the situation, you can get various incentives and tax deductions that can help cover the costs of owning, operating, and managing a property.
Additionally, the investment property can also be depreciated over its useful life, which further lowers taxable income. Currently, the useful life of residential properties stands at 27.5 years and 39 years for commercial properties.
3. Increased value over time
Over time, the value of property always appreciates, which means that any profits generated by a property-dependent business will also increase in value. The important thing is having the time and resources to stay in it for the long haul.
In the short run, there will be dips in prices, or you might not be able to find renters, so it’s essential not to stretch yourself too thin. Smart investors always have savings that can help them ride out the bad times.
Looking to invest in real estate?
Are you ready to invest in commercial real estate and reap all these benefits? FSBO Commercial’s real estate advisors can help you find investment commercial real estate that meets your needs. As experts and reputable commercial realtors in NY, NJ, and PA, they can help you secure the best deals on the market.
The online real estate marketplace offers a wide selection of commercial real estate listings, including residential properties, retail locations, and office buildings. Visit their online platform to view property listings in New York or take a look at businesses for sale.
Contact FSBO Commercial for more information about their services.