A 2014 Gallup poll showed that individuals with a lower income (under $75,000) believed that gold was a better, smarter investment. While those who had incomes of higher than $75,000 typically favored real estate as an investment option.
Perhaps unsurprisingly, those who favored Burlington County real estate investments are on the money. While gold is still a fair competitor in the investment market, it is not as strong of an investment as real estate. As a rule, reliable Burlington County real estate is a better investment option than gold, for several reasons.
Control: The most obvious reason purchasing property for sale in Burlington County is a better use of your money than purchasing gold is that you have more control over the success of your real estate property. Gold values fluctuate with the market. As a property owner, you run your investment. You can make changes to rent, improve the property and reduce expenses to increase your revenue. While you should diversify investments (some real estate, some mutual funds etc.), having more power over your investment allows you to have a more direct hand in your success.
Low or no Taxes: There are few tax benefits to investing in gold. However, purchasing quality real estate in Burlington County does offer tax advantages, including the option to grow tax-free. You may be able to reduce tax liabilities by opting for an installment sale or a 1031 exchange. These are not options when you invest in gold or stocks (though stocks and mutual funds do offer tax benefits of their own).
If you purchase wisely, the income (cash flow) from your property could be tax-free. This is based largely on the foreclosure homes for sale in Burlington County. The combination of home depreciation and the deduction of mortgage interest rates can render your cash flow tax-free. If done correctly, the only tax you could pay on this investment is when you sell the home.
Tax write-offs: Tax benefits are arguably one of the best benefits of investing in real estate. You may be able to use personal expenses as business deductions. For example, if you must travel to and from the rental property to check on it, you can take travel expenses off. Additionally, you can take any money you pay to someone to manage the property as a deduction on your taxes.
An investment you can see: Unlike stocks, bonds (and most gold investments), you have a physical product you can see. Burlington County real estate offers a visible investment. The ability to see, touch and change the property makes it an attractive investment option. Additionally, people need a place to live. You need a place to live. If worse comes to worse, you could live in your investment property. Gold bars and paper offer little tangible value.
Less financial stress: Purchasing real estate in Burlington County is still an investment and if property values drop, it is going to hurt. However, if you opt to use the property as a rental, you are not likely to feel the pain as strongly as if you were watching the value of gold rise and fall. It is a little easier to swallow falling mortgage prices when you are either living in the home or making a rental income.
Long-term investing is always a better option: Whether you opt to purchase Burlington County homes for sale or invest in conservative mutual funds, a long-term strategy is always the best bet for maximizing your revenue and reducing losses. Accumulating wealth takes time. Working with the best Burlington County realtor will allow you to find homes for sale in Burlington County that will offer a viable retirement and investment plan. In addition to a 401k and/or IRA, a real estate investment is a great way to diversity your investment portfolio. The fluctuating market requires diversity to benefit from your investments.
Smart Real Estate Investment:
Investing in foreclosed or bank owned property is a strategic move. In many cases, the home your purchase will be in poor condition. If you follow the adage of purchasing the worst home in better neighborhoods, this can work to your benefit. Surrounding property values affect the value of your investment. It is much easier to make gains when surrounding property values are equal or higher than your investment property value.
Understanding surrounding property values and offer strategies will make it much easier for you to land a foreclosed property you feel good about. Professional real estate agents can help you get the information you need to make a smart investment.
A Burlington County realtor can help you navigate the waters of bank owned property investments. Purchasing this type of property may take longer and require more financial details than traditional home purchases. This is particularly true for bank owned properties, when the bank needs to get money back on the property they own. As real estate investing becomes more popular, it will become a more competitive market. Having the best Burlington County real estate company at your side to help you.
First time investors should also factor in the cost of a management company into your estimated returns. Managing larger rental properties can take a lot of work and a lot of time. Many beginners (and even experts) find that applying a certain percentage of their revenue towards a management company is worth the expense.