6 Reasons for investing in Florida Investment Property

Written by Lisa Carson


Continued from page 1

It is amazing what a cleanup, a little landscaping and a paint job can do to increaserepparttar value of a property. Only a few hundred dollars well spent can result in huge value gains in Orlando Investment Property. Your $110,000 property with a little effort could easily be worth $115,000, $120,000 or more virtually overnight! Do you have to do any of this work yourself? Absolutely not! If you like to do that sort of thing then have at it, but if not, simply hire it done and accept a little lower net gain.

Reason 4: Superior Tax Position: The tax code inrepparttar 140704 United States is geared to reward Investors who make housing and other property available torepparttar 140705 population. When you invest in stocks, you are taxed at some ofrepparttar 140706 highest rates inrepparttar 140707 tax code. When you invest in Orlando Investment Property, you put yourself in one ofrepparttar 140708 best tax positions inrepparttar 140709 business world. Rememberrepparttar 140710 wealthy that hold substantial portions of their assets in Orlando Investment Property? Tax advantages are one ofrepparttar 140711 main reasons this is true.

Continuing withrepparttar 140712 above example, let's say that you have completed your 'deal' withrepparttar 140713 $10,000 invested with a 90% mortgage to purchaserepparttar 140714 $100,000 property that appraised for $110,000 (because you 'found a good deal'), which you improved to say, $115,000 by spending another $1000 on cleanup etc. Assume that one year passes andrepparttar 140715 Orlando Investment Property market grew by 6%, your property would now be worth $122,000. So far, so good right? If you are like most people, you may want to spend some of your hard earned money.

Let's dorepparttar 140716 numbers. You have a mortgage at current rates that started at $90,000 and after a year worth of payments (the majority of which are tax deductible) you still owe approximately $89,000. However, your property is now worth approximately $122,000. If you were to refinance at 90% once again, you would take out a new mortgage of approximately $110,000. This will leave you with approximately $21,000 in cash in your pocket. Now,repparttar 140717 BIG question; do you have to pay tax on that money? Absolutely Not! You have not soldrepparttar 140718 property or realized a 'capital gain'. You have simply borrowed money from yourself. You are able to do what you wish with that money, free from any tax whatsoever. Obviously, a good strategy might be to purchase two more properties just like your first deal!

Also, we have not taken into accountrepparttar 140719 fact that ALL of your interest payments on this property are tax deductible. In addition, you are also able to depreciaterepparttar 140720 property itself and all of its contents for additional tax advantages if you choose to do so.

Let's be fair and comparerepparttar 140721 Orlando Investment Property tax position withrepparttar 140722 stock scenario. Assume thatrepparttar 140723 $10,000 initial stock investment grew by 10% inrepparttar 140724 first year, creating a gain of $1000 and you wish to access it. If you draw it out, you will pay from 20-28% (or higher) in capital gains tax in order to have access to this money. This reduces your net gain to $800 (actual 8%) or less, depending on your tax situation. Compare that to Orlando Investment Property and you are beginning to getrepparttar 140725 picture.

Reason 5: Limit Your Exposure To Risk Risk Management: Do you remember atrepparttar 140726 top when we said that banks would compete fiercely to loan you money on Orlando Investment Property? The answer torepparttar 140727 'why' is very simple. Low Risk. Banks incur little if any risk when loaning money on Orlando Investment Property due torepparttar 140728 steady, solid growth rate ofrepparttar 140729 property market, as well asrepparttar 140730 fact that if you default on your payments they will simply sellrepparttar 140731 property to somebody else. This is in direct contrast torepparttar 140732 volatile stock market, which can vary daily with sharp increases and decreases in value. Furthermore, banks realize that a property isn't going anywhere, whereas many investors know all too well about .com and other types of companies that were there yesterday and gone today.

This is all not to say that Orlando Investment Property markets don't go down from time to time, howeverrepparttar 140733 dips are much less dramatic than that which can take place inrepparttar 140734 stock market, proven out byrepparttar 140735 banks' willingness to loan money on property.

Reason 6: Protecting your peace of mind. Finally, Now that we understandrepparttar 140736 value of leverage and risk management we realize that a 6% Orlando Investment Property gain 'beatsrepparttar 140737 pants off' a 10% stock gain in actual return on investment by a wide margin (approximately 50%, not taking into account several factors that can increase this number such as tax advantages, income on property etc.) Owning good, solid Orlando Investment Property allows you to sleep at night, or go on an extended vacation without worrying about your asset column. This is directly opposed to holding a substantial percentage of your assets in stocks.

Lisa Carson http://www.biminibayresortinvestment.com lcarson@biminibayresortinvestment.com



Florida Real Estate Investing Expert


Orlando Investment Property

Written by Lisa Carson


Continued from page 1

6. Make sure your Orlando property investment provides a high quality clubhouse with amenities. Minimum amenities in family resorts inrepparttar Orlando, FL market are fitness center, game room, restaurants, food courts, bars, daycare, movie-theatre.

7. Make sure your Orlando property investment provides a water park and pool forrepparttar 140703 kids with amenities: Lazy river, water slides, cabanas, tiki bars, kids pools, adult pools, kids water park and playground and at least 10,000 square feet of deck space. This ensures family vacations are a true experience and keeps everyone entertained while atrepparttar 140704 resort.

8. Make sure if you exercise on vacation that your property investment hasrepparttar 140705 following as well: Basketball courts, tennis courts and running trails.

9. Make sure you can stay in your Orlando Property investment at a low cost. This will ensure you and your family can come to Orlando and experiencerepparttar 140706 pleasures of a family vacation.

10. Make sure property has 24 hour onsite management. This will ensure if there are any security, housekeeping or maintenance issues, they can be resolved immediately.

11 ½. Make sure property is not further than 10 miles from Disney. This will ensure your close enough so it doesn’t take long to arrive but far enough to avoid allrepparttar 140707 heavy traffic andrepparttar 140708 high prices on Disney Property.

If your Orlando property investment hasrepparttar 140709 following, you can feel comfortable you have a great investment. http://www.biminibayresortinvestment.com

Orlando Investment Property Expert


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