I wrote this article and was disappointed to find it posted with out credit or being mentioned. Larry Matthews President/Broker Hants Realty Limited. http:Real estate is probably one of the best investments you can make for wealth creation over time. Right now many people have cashed out of the stock market and are hesitant to re-invest for various and in some cases obvious reasons. Mainly it's a lack of trust. All markets are mainly influenced by supply and demand. Right now that lack of trust is still evident as the value of shares fluctuate on the stock market. In my opinion the stock market has become a market ruled by emotion and manipulated by those who make their money taking advantage of those emotions. Not a place for the faint of heart or small investors who can't afford to lose the limited principal (money) they have to work with.
Although real estate is blamed for the recent financial crisis it was really the financial manipulation of the mortgages by those same manipulator types I refer to in the stock market that caused the crisis. In my opinion the actual fundamentals of real estate as an investment are still as solid as they ever were and it will continue to be a great investment and wealth builder for years to come. How ever as in any investment strategy you need a blueprint or plan to follow. Here are some important things to consider.
As in all investment strategies it is not as important what you make as it is what you keep. What you keep is your true return on the investment. What you keep is after expenses and taxes. It is extremely important to start off on the right foot tax wise. Depending on your circumstances and ultimate investment goals. Do you want to own the properties personally or do you want to set up a holding company to own the properties. In some cases you may want two companies a holding companies and an operating company to manage the properties. This is where you start your blueprint and structure your plan in a way that is most advantageous to you tax wise. I strongly recommend consulting with both an accountant and a lawyer for advice. The benefits of a proper tax structure will be substantial as you build your portfolio and eventually decide to cash out for profit.



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