Looking to invest in real estate?
Even though the year is coming to an end, it’s not too late to buy. A wide variety of benefits exist when buying a home at the end of the year. And even though some of these benefits are traditionally for homeowners and not investors, there’s no reason why you shouldn’t cash in on them too.
Let’s examine some of the great reasons to buy an investment property at the end of the year.
Write Expenses off Your Taxes
If you play your cards right, you can write a variety of expenses off your taxable income, especially if you buy and begin renovations right away.
With depreciation, mortgage interest and other tax deductions available for your rental property, you may be able to keep your income once you actually begin renting. The number of deductions will offset any taxes you need to pay.
Lower Sales Prices
When the weather cools off, so does the real estate market. Those who were unable to sell during the hot months will be more willing to negotiate.
Deduct Your Mortgage Points
If you need an extra tax deduction before the end of the year, you can deduct all of the points paid on your mortgage from your taxes.
High Supply of Help
Since winter months are traditionally slow for construction workers, and it will be easier to find help—possibly at a lower price.
It’s not too late to invest in real estate this year, but it may not be best for your situation. Be sure to consult with your tax professional before making any large financial decisions.
If you’re able to snag some homes before year’s end, you’re likely to find great deals and smoother transactions. Avoiding the rush puts you in more control when and how things get done, since real estate agents and mortgage professionals will be less busy.