6 ways to create wealth through real estate.

Sure, real estate is a big investment. But remember it IS an investment. If you purchase a property strategically, it can help you generate income, tax savings and capital appreciation. Here are some proven ways to make money:

1. Use your home for a business. Not only does this save you the cost of renting a separate location for your business, it creates tax deductions for the portion of your home that you use for work. Even if you don't have your own business, you may be able to telecommute with your current employer.

2. Rent out a portion of your home. When buying, look for properties with basement suites, mother-in-law suites or, if you're willing to share living space, extra bathrooms. This can create substantial monthly revenue which can reduce or cover your mortgage payments.

3. Rent out storage or parking. If your garage or basement are usually empty, rent them out for storage space. Similarly, if your condo comes with a parking space you never use, rent it out. Be sure to check with condo regulations first, and have a contract so you're not liable for damage.

4. Rent to vacationers. If you travel for months at a time, offer your home as a vacation rental. This also works if you have a second often-unoccupied property in a desirable location. Again, make sure you have a contract that covers any potential risks.

5. Reduce taxes.When you purchase a revenue property with a relatively small down payment, you generate substantial tax deductions for mortgage interest, closing costs, property taxes and ongoing maintenance.

6. Leverage your equity.If you have substantial equity in your home, you have access to an affordable source of funding for other revenue-generating opportunities, like investments, starting your own business or upgrading your education.

For a free strategy session on how to create wealth through real estate, call us today.

We'll explore your options and determine the best plan of action.

Your trusted mortgage advisor,

Jeff Kerwin

 

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