by Spider » Mon Sep 15, 2014 11:07 am
There are some pretty awesome tax advantages to buying investment property. You can write off pretty much all operating expenses, and you can depreciate the property by a given amount every year, creating a tax shelter for income on the property. Plus, when you eventually sell you can avoid taxes pretty comprehensively by swapping to another property somewhere else. Not the same as cashing in, but it allows you to move a real estate investment around tax free. Pretty sure the tax on the property's value gain is pretty much equivalent to that of stock.
All this aside from the fact that your leveraging the banks money to finance the thing, and paying at least a big chunk of the payments and operating expenses with the money generated from tenants.
Real estate ain't bad. Not as good as stocks, but a great way to round the portfolio out. Huge tax advantages.