Growth of real estate wealth versus other types of investments.
As Kathy Fettke discusses in the video below, buying gold or silver may make you sleep better at night knowing that you own something of value but your gains in value from gold or silver will not be as much as real estate can potentially increase in value.
Plus gold or silver cannot produce income like real estate can.
If you buy $30,000 in gold, silver or even stocks, and you receive a 10% ROI, you would get $3000.
Now if you used that $30,000 to purchase a $150,000 home and you received a 10% ROI, you would receive 10% of $150,000 or a $15,000 ROI which is considerably more.
Taxes and inflation can destroy wealth.
The federal income tax rate is around 35% and the average state tax rate is 9.3%. Of course some states do not have a state income tax like Texas, but then property taxes are much higher.
So can we legally avoid some of these taxes that drain our wealth?
Renting out your properties is a very smart way to invest in real estate.
Tax deductions for a rental property that you own include: mortgage interest, property taxes, property insurance, maintenance, repairs, professional fees, education and travel.
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