September 4, 2020 – Why Should You Invest In Real Estate?

September 4, 2020 – Why Should You Invest In Real Estate?

QUOTE OF THE WEEK

“Everything that happens to you is a reflection of what you believe about yourself. We cannot outperform our level of self-esteem. We cannot draw to ourselves more than we think we are worth.” ~Iyanla Vanzant

Hi Readers!

One of the questions that we get a lot is why is real estate a good investment versus stocks or bank CD’s or any number of other investment vehicles available.  In this edition, we go over some reasons why real estate, in our opinion, leaves other investments in the dust as far as the number of benefits or advantages are concerned.  

Also, as I mentioned last week, whenever I come across something new that I think might be a benefit to our subscribers, I want to make sure that I include it so I recently came across an organization that was born out of the George Floyd situation to help low to mid-income urban dwellers purchase homes.  It’s called The Neighborhood Assistance Corporation of America (NACA).  Check it out under “Suggested Materials”.

Lastly, as I watched a very powerful storm through my window last week, the strong invisible but real wind that was knocking over trees and throwing large debris around like it was nothing, reminded me that this was the same unseen energy we possess within us which has as much power to affect circumstances in our lives as the wind outside if we learn to tap into it.  This is what I talk about in this week’s “Inspiration Corner”.

I hope you guys enjoy the information we provide weekly and if there’s a topic you’d like to know more about, please drop us a line through the Contact Us page on our website and let us know.

We’re always happy to hear from you!

Lena W. Claybon
Co-Founder/CEO

Feature Story

Why Should You Invest Real Estate?
Real estate investing is increasing at a staggering rate these days.  The ability to create cashflow and, possibly, even generational wealth is very attractive, however, there are other amazing benefits as well.  Following are a few of the reasons why real estate investing is a good idea.  
 
Build Equity in the Property

For those who are looking to invest in real estate on a long-term scale, there are certain benefits in doing so. When you purchase real estate and hold on to it for a while, you are ultimately able to build a good deal of equity in the home you are purchasing. Equity is a beneficial aspect because the more equity a property has, the more that it adds to your net worth.  Also, it increases how much money you may be able to borrow against it in the future to use for other investment properties. This is an important and frequently cited reason why people choose to invest in “buy and hold” real estate or rental properties.

Possible Tax Advantages 

Another benefit of purchasing real estate for investment purposes is the possible tax advantages that you may receive as a result of owning the property. Some of these advantages are:

Deductions

One of the most basic tax advantages to investing in real estate is the ability to deduct certain expenses relating to an investment property which may include: Property tax, Property insurance, Mortgage interest, Property management fees, Property repairs, capital improvements, or ongoing maintenance.

Depreciation

If you own a property that is being used for business or income-producing purposes for a year or more, you can depreciate the cost of the property over time.  Depreciation is the method of deducting a property’s loss in value over its expected life, which for residential property is 27.5 years, and commercial property is 39 years. In essence, it’s accounting for a decrease in value from average use and wear and tear.  Depreciation can only be used on investment properties, making it a huge tax advantage available only to real estate investors.

Capital Gains Taxes Instead of Income Taxes

When you sell a property for more than you originally purchased it for, the profit will be taxed as short-term or long-term capital gains, which is typically a lower tax rate than ordinary income tax.  Short-term capital gains, which are properties held one year or less, can range from 10% to 37% depending on your income bracket. Long-term capital gains, which are properties held a year and one day or more, are taxed more favorably, ranging from 0% to 20% depending on your tax bracket.  You can also utilize certain tax-deferred or tax-free methods of investing in real estate to avoid paying capital gains such as investing tax-deferred or tax-free money such as retirement accounts.

High Rate of Return on the Sale of the Property

When the investment property is sold somewhere down the road, the investor will most likely see a much higher rate of return on the money invested in the property than if that same money had been left in a saving account or other low-interest investment vehicle. 

So, in summary, investing in real estate is a great way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property.  These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!

 

Manifestation Corner

Understanding Vibration

I was watching a video podcast last week and the subject was on Quantum Physics, a science I’ve always been fascinated with.  The interviewee goes on to say that many people are turned off by the term ‘quantum physics’ because they immediately think its something difficult but its not.  She explained that Quantum Physics was just the study of the stuff that makes up the Universe, and in its most basic, primordial form, it was just energy or vibration.

 

She went on to explain that everything is made of this vibration including US so even though we “appear” to be made of solid matter, there really is no such thing, which has been scientifically proven.  She explained it even further but it made me pause to wonder why the majority of us as humans (even me at times) find it so hard to accept and believe that we are vibrational beings.  I guess it’s because we can’t see it, although, it explains so easily how our thoughts attract what they attract.  

Vibration is the same as energy and energy attracts like energy.  So, what we focus our thoughts on is what we attract because that is what our “vibration” is emitting.  This is why it’s so important to watch your thoughts and to try to focus on the things you want to attract and not the things that you don’t.  It really hit home with me this past week as I sat in the midst of a storm that hit my area pretty hard and I heard the wind howling outside my house.  Like vibration, I couldn’t see it other than the trees blowing and debris tumbling down the street but I, definitely, saw the results of it and I sure knew it was there!   

So just like the wind, our vibration is always there and if you want to see what you are emitting, just watch what comes into your life on a regular basis.  If you like it, keep doing what you’re doing, but if you don’t, change it.  Begin to watch your thoughts and emotions and begin to deliberately offer the vibration of what you want to see show up in your life and before long, it will!

Namaste

Suggested Materials


The Neighborhood Assistance Corporation of America (“NACA”) is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or modify their predatory loan with far better terms than those provided even in the prime market.

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