California can be a great state to invest your hard earned money in the long-term real estate. The Golden State has provided excellent wealth growth for real estate owners over the past 30 years, and it has some exclusive characteristics that make it absolutely appealing to an investment property owner.
ONow this isn’t to say that you can just blindly buy any old property in the state and build wealth. But if you do your research you can find properties that make smart sense. Here’s why:
The far majority of us will never get rich overnight. It takes long-term investing and a diverse portfolio plus Real Estate to build true wealth. Don’t forget Real Estate is an important part of the equation.
Everyone knows that owning a home is the American dream, but did you know that borrowing to pay for one is a taxpayer’s dream? Home mortgage interest is deductible on your income taxes if you itemize. Did you know? You can deduct the interest on up to one million dollars of home mortgage debt, whether it is used to purchase a first or a second home. You can also deduct the interest on up to $100,000 of home equity debt, even if you don’t use the money for home improvements. Real estate taxes are deductible as well. With the availability of these tax deductions, you should consider whether borrowing on a home is right for you. What could the home mortgage deduction mean to you? Contact us to learn more.
Generate Significant Cash Flow
The rent-to-value ratio is king, the prospect of having an excellent appreciation in your resale value should be considered secondary. You should know that buying a rental property is about cash flow, not the speculation of growth.
For example, a lease with an option to buy can be a very effective strategy if the property is in a solid location. The rent you charge will be more a month, but a portion of it might go toward the credits on the purchase price for the tenant/buyer. In return for an option to buy the home and the credits, the tenant might agree to handle small repairs, thus relieving you (or your management company) of some of the upkeep duties.
There are a lot of big opportunities out there for people who would like to invest in rental properties, but it will take education and a strong team to help you become a successful real estate investor. CIMA Realty Group is an expert in helping forward thinking people like you achieve real estate success. Call our office today to set up a FREE introductory consultation.
The single most important way to make money in real estate is through appreciation, so an understanding of it is crucial. When you’re investing, appreciation makes investing lucrative. When you’re buying a primary residence, appreciation is what usually tips the scale towards buying rather than renting. Call CIMA Realty Group and we can help you move forward to real estate success.
Benefits of Hiring a CIMA Real Estate Consultant
- Support: (We are here to help, every step of the way. Placing our clients’ interest first before our own. At CIMA you’re not just a number, we educate our clients through the process and help them understand it to make it a stress- free experience
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- Access to Inventory and Marketing Network
- Experienced Real Estate Agents: We understand the local market and continue to attend current Realtor seminars to ensure everyone is up to date on new regulations.
CIMA Realty Group looks forward to helping you
We are dedicated to excellence and always put our clients interest first. That is our key to success. CIMA Real Estate Group.