We all want to use our money wisely. For those of us with a little extra to spare, you might consider investing in real estate. If you’re stuck between investing in real estate and saving your money, here’s a quick guide to help you.

Keeping Money in the Bank

A lot of people choose to take their extra money and put it in their savings account. While they don’t get much back in return, they won’t lose any money. Most people figure that it’s easily accessible if they need it in the future. 

However, you miss out on the chance to make even more money if you keep it stashed away. You might earn a little bit of interest (though it’s usually less than the rate of inflation), but investing in real estate could earn you a lot more. 

Investing in Real Estate

Real estate has always been a favorite investment for people that want little risk and high returns. While it requires more money and time at the start, the passive income stream and possibly considerable appreciation more than makeup for it. 

The biggest reason to invest in real estate is the tax benefits. You can receive lots of deductions, saving you anywhere from hundreds to millions each year, and you’ll still be earning through passive income. Here are some of the ways your real estate investment can get you tax benefits. 

Depreciation

The IRS allows you to list depreciation as a deductible expense on your taxes. Anything that depreciates, including real estate, can be counted for a depreciation deduction.

Pass-Through Deductions

Pass-through deductions are covered under the Tax Cuts and Jobs Act. Some business owners, including those who earn rental income, can deduct up to 20 percent of their net income from their taxes. 

Capital Gains

With a real estate investment, you have the option to pay capital gains tax rather than income tax, which is typically more expensive than capital gains.

Retirement

Some retirement accounts, like an HSA or an IRA, allow you to invest in real estate tax-deferred or tax-free.

Opportunity Zones

Opportunity zones offer reduced or eliminated taxes for real estate investments in the country’s most rural and distressed areas.

Why Real Estate Wins

If you’re trying to figure out what to do with your money in the long-term, invest in real estate. You’ll earn and save a lot more than you would if you keep it in the bank. The tax benefits alone are enough to show that real estate investments are the way to go. 

About Jin Kim:

InvestwithJin.com is a real estate investment company. We have been actively involved in the Downtown Toronto area real estate investing for a number of years.  Our mission is to provide quality housing for quality tenants, while at the same time providing an above average return on investment (R.O.I) for our investor partners and ourselves.  It is truly a win-win-win way of investing!

If you aren’t already on our prospective investor contact list, you are welcome to join us and be the first to know when we have exciting and profitable investment opportunities available.  Just put in your contact information in the box at the right of the screen, and I will also give you access to a short video called “Why Real Estate is An Exceptional Way To Invest”.

And if you are ready to find out more about our investment program, I invite you to contact me directly, and I will be happy to show you exactly how it works, either in person, by phone, or on-line.

For more information about Jin and his investment program,
please call (416) 579-1129