A second benefit is that of rental property tax deductions. Owning real estate investments as a business venture allows you to treat many items as business expenses. Shifting some of your expenses for your cell phone, Internet service, auto and even your home is possible with a real estate business. Depreciation “expense” usually allows you to show a “loss” of value when in fact your property may be increasing in value. When you sell, capital gains taxes are often at a lower rate than comparable wage income. Overall, the tax benefits of owning real estate may allow you to live a better lifestyle while showing a lower income.
The sub prime lender bust. With the fall in sub prime mortgage lenders, there are people who cannot qualify for houses and foreclosures are up. This means that the demand for rentals is going up.
Take a look at your results and ask yourself if they are what you want. If not, there’s a 90%25 chance that you have some unconscious belief holding you back. My unconscious belief was that I could not be successful and I proved that over and over again by my results, creating an even stronger belief that was self-perpetuating. Coaching helped me to look at my results with an objective non-judgemental view and tell myself “Ohhh, so that’s what my belief was”.
Have a good think about what your requirements are for the land and plot you wish to purchase. If you are a keen gardener then perhaps you will consider buying a plot that is large enough to keep a good sized garden. Towns and city areas normally have a higher availability and choice when it comes to property investing.
Think about the list for one moment and consider this: A seller who has become unemployed and is desperate of getting rid of debt obligations will negotiate very differently from someone looking to relocate closer to a safer neighborhood.
Sellers more willing to take creative financing: In an up economy sellers can demand and get not only their selling price but get all cash. When the economy turns upside down so do the sellers. They are much more willing to consider other creative financing. This can take consistent and even long negotiations. I have seen sellers even take as much as 98%25 seller carries back financing after much negotiation. When the seller is behind on his payments to the bank, that bank may seriously consider a short sale or other options. There are many options that you as a buyer have when buying in a down economy that are not available to you in an up market.
Jane’s story, and the multitude of stories like hers, is exactly why I created The Zen Investor. I wanted to help other investors – both beginners and pros – take advantage of my hard-earned property investment experience, my wisdom and passion for real estate. To locate properties which offer fantastic value, ease of entry, stability, and very strong cash flow. Add to this a pre-arranged management system and voila! You have a Zen investment, a problem free and a passive income stream that would even please the Buddha! Remember, investing is supposed to be fun and exciting as we build up our wealth, investing in additional properties increasing our portfolios and cash flow. Unfortunately for Jane this will not be the case.