What Are the Major Benefits of Buying Real Estate in NYC?
Hauseit
2019-02-12
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What Are the Advantages of Investing in Real Estate: https://www.hauseit.com/nyc-real-estate-vs-investing-in-stock-market/
Calculate Your Buyer Closing Costs: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
The primary advantages of investing in real estate include tax benefits, capital upside, portfolio diversification, inexpensive leverage and the fact that you have complete control over your investment.
Tax Benefits
Real estate offers tax benefits to both investors as well those who use their homes as a residence.
If you’re buying an apartment to live in, you’ll be able to pocket up to $500,000 in tax-free capital gains when selling if the property has been your primary residence for two out of the past five years.
In NYC, you can also apply for a property tax abatement if you use your home as a primary residence. We explain everything about NYC real estate taxes in this article.
Capital Upside
Building equity through a mortgage offers you more long term upside than wasting money on rent. Furthermore, you can juice your real estate returns by finding the right property and making strategic decisions with your property
For example, you have the ability to make capital improvements, raise rents and utilize tax benefits. Compared with real estate, the stock market is completely passive in the sense that you have essentially no control over how the companies you invest in manage their businesses and assets.
Portfolio Diversification
Owning real estate also provides your portfolio with the benefit of owning a physical asset. In an increasingly volatile and interconnected world, having a tangible asset can have a stabilizing effect on your finances during inflationary periods and bouts of stock market turbulence.
If you own an investment property during a market downturn, you will likely still generate rental income each month even if the stocks you own have suspended or reduced their dividends.
Inexpensive Leverage
Buying real estate is the typically only opportunity for an individual to borrow a substantial amount of money at a low interest rate. Leverage on real estate is especially lucrative because it is not marked to market, and this means that your leverage won’t go away in periods of market turbulence.
Control over Your Investment
Owning real estate is a more active investment compared to the stock market. The benefit of real estate is that the additional control you have over your asset gives you the ability to add value and maximize the potential of your real estate holdings.
For example, let’s say you own a rental property. You have complete control over what improvements to make, which contractor to hire, how much rent to charge your tenant and when you decide to sell.
Looking to buy or sell a home in New York? Learn how you can save on commission and closing costs at https://www.hauseit.com
Reduce Your Buyer Closing Costs in NYC: ht
Calculate Your Buyer Closing Costs: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
The primary advantages of investing in real estate include tax benefits, capital upside, portfolio diversification, inexpensive leverage and the fact that you have complete control over your investment.
Tax Benefits
Real estate offers tax benefits to both investors as well those who use their homes as a residence.
If you’re buying an apartment to live in, you’ll be able to pocket up to $500,000 in tax-free capital gains when selling if the property has been your primary residence for two out of the past five years.
In NYC, you can also apply for a property tax abatement if you use your home as a primary residence. We explain everything about NYC real estate taxes in this article.
Capital Upside
Building equity through a mortgage offers you more long term upside than wasting money on rent. Furthermore, you can juice your real estate returns by finding the right property and making strategic decisions with your property
For example, you have the ability to make capital improvements, raise rents and utilize tax benefits. Compared with real estate, the stock market is completely passive in the sense that you have essentially no control over how the companies you invest in manage their businesses and assets.
Portfolio Diversification
Owning real estate also provides your portfolio with the benefit of owning a physical asset. In an increasingly volatile and interconnected world, having a tangible asset can have a stabilizing effect on your finances during inflationary periods and bouts of stock market turbulence.
If you own an investment property during a market downturn, you will likely still generate rental income each month even if the stocks you own have suspended or reduced their dividends.
Inexpensive Leverage
Buying real estate is the typically only opportunity for an individual to borrow a substantial amount of money at a low interest rate. Leverage on real estate is especially lucrative because it is not marked to market, and this means that your leverage won’t go away in periods of market turbulence.
Control over Your Investment
Owning real estate is a more active investment compared to the stock market. The benefit of real estate is that the additional control you have over your asset gives you the ability to add value and maximize the potential of your real estate holdings.
For example, let’s say you own a rental property. You have complete control over what improvements to make, which contractor to hire, how much rent to charge your tenant and when you decide to sell.
Looking to buy or sell a home in New York? Learn how you can save on commission and closing costs at https://www.hauseit.com
Reduce Your Buyer Closing Costs in NYC: ht
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