Tax time has come and gone. We hope you filed your taxes on time and, even more, we hope you have a refund coming your way! When trying to decide what to do with that refund, there are many opportunities to invest it, but we think you should consider investing in a rental property here in Wilmington, N.C.
As I have mentioned before, the Cape Fear area rental housing market is strong, with projections of continued and steady growth. If you haven’t considered taking advantage of this, here are some reasons why you should invest your tax refund in income property:
- It doesn't take as much money (or time) as you think. When it comes to buying a secondary piece of real estate for renting, there are a variety of price points available. Location plays a big factor in a property’s price, so talk to a property manager first for rental rates and rentability of an area. Whatever budget you have, there are properties out there that will work for you.
Once you’ve purchased property, hiring a property management company (like Sweyer Property Management) makes the entire process easy for you. Using our expertise and diverse services, renting your place can be efficient and cost effective. A company like ours will take care of your maintenance, contracts, billing and more.
- Property is independent of market hazards. Stocks, as we all know, can be fickle. We’ve all watched the financial markets swing up and down over the past decade, but real estate is a holding that is primed to go up. Granted, the housing crash that recently happened is still raw for many of us. Yet we’ve all learned from that, and smart investors know what good prices are.
Plus, it is still proven that owning real estate is an effective strategy for building wealth for many reasons, such as depreciation, elimination of principal and diversification.
At Sweyer Property Management, we understand a property’s potential rental income. By seeing what our properties are listed at using our new app, you can determine what mortgage price points make sense for you. Once you’ve made a wise investment, you can watch your property value maintain or grow, regardless of how the rest of your portfolio performs.
All financial advisers agree that diversifying your assets is the best long-term plan for growth and stability, so talk to your adviser about investing in property.
- The tax benefits work in your favor. Many landlords don’t realize that when it comes to the IRS rules, income properties can result in big tax breaks. According to TurboTax, “If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.”
In addition, purchasing a home at a lower price point and fixing it up while having a renter in place is a great tax-deductible opportunity. The investments in home improvements can lead to further tax breaks. But even more important, those upgrades will surely bring in more rent (most likely in higher rates and better occupancy) over time. When you are ready to sell, the property will look great and be market-prepared.
All of this could set you up for an even better tax return in 2016, when you’re ready to invest in a new income property.
Contact us today if you are ready to get started in the rental market here in Wilmington.
Sweyer Property Management has been providing real estate property management services and long-term rentals to the Wilmington area since 1987. The company continues to be the industry leader with more than 1400+ units and more than 20 employees. Sweyer Property Management has exhibited continuous growth throughout the Wilmington, Leland and Hampstead areas while maintaining a 4.8 Google+ rating for customer service. To inquire about the company’s full-service management services, or to take a tour of houses for rent in the area, email [email protected], visit us online at WilmingtonForRent.com or download our mobile app, Sweyer Rentals. You can also Like and follow the Sweyer Property Management Facebook page to get property management tips or see properties for rent.