|Real estate investing|
When you invest in real estate, you invest in something tangible. You can look at it, feel it, drive by with your friends, point out the window, and say, “I own that.” For some people, that’s important psychologically.
Given the current volatility in the stock market, investors are reassessing asset allocations in their portfolio, and considering how real estate may fit into this from an asset allocation standpoint.
“More people are looking to real estate as their next investment, because of the potential for both appreciation and cash flow,” says Jennifer Anderson, of Anderson Coastal Group in San Diego. “It's also a real, tangible item that can provide more control than other forms of investment.”
Benefits of buying an investment property
We always recommend speaking to your qualified tax adviser on your particular situation. However, generally speaking, there can be tax benefits to owning an investment property.
It also diversifies your investment portfolio and protects your net worth while the market goes up and down.
Precautions to take before buying
He says that because investment property owners will be responsible for repairs and maintenance, newer furniture, condo fees (Beach Condos)
He also advises buyers to research the appropriate legal vehicle, typically an LLC, with sufficient insurance in place.
Condo HO6 policy with added protections
To get a better sense of how much rent you might be able to collect, look online Airbnb and look at the rates
You can block out days, weeks or months for family time and actually use the property yourself
How to determine affordability
Pre-approval will tell you how much the lender is willing to give you for the purchase of your second home.
Give me a call to see investment properties here on the shore 443-333-6310