Real estate investment can be a great way to build wealth and generate passive income. One of the biggest advantages of investing in real estate is the ability to take advantage of tax benefits and deductions. These can include things like the mortgage interest deduction, depreciation, and capital gains exclusions.
One of the most attractive tax benefits of real estate investing is the mortgage interest deduction. This allows you to deduct the interest you pay on your mortgage from your taxable income. This can be a significant savings, especially in the early years of a mortgage when the majority of your payment is going towards interest.
Another tax benefit of real estate investing is depreciation. You can depreciate the value of your property over a period of 27.5 years. This means that you can deduct a portion of the value of your property each year, which can help to offset any rental income you earn.
In addition to these tax benefits, real estate investing also has the potential for appreciation. This means that as the value of your property increases, so does your net worth. This can be a great way to build wealth over time.
At RGI Realty, we truly understand the importance of real estate investment, and many of us personally love to invest in real estate ourselves. We have dedicated people on our team who have the experience and knowledge who love to help investors find the perfect investment properties, analyze them and make sure they meet their needs and goals. Contact us today to learn more!