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| Investing in Real Estate |
Investing in vacation property and homes is one of the biggest business in Myrtle Beach. Although there is much to think about when deciding to buy an investment property, having a local who understands the market and everything that goes along with the process can be a major asset to you...especially if you reside out of town, as most of our investors do.
If you decide to buy land and build your own investment property to sell at a later date, there is much you will need to understand. Building codes change on a regular basis from town to town. For example, many areas restrict a home's square footage, total lot coverage, regulate septic systems, and limit the number of bedrooms. All of these factors can affect your rental income. Choosing a REALTOR who knows all of this information will save you some major stresses in the building process. We will take the time to develop the property through the buyer's eyes and guide the buyer through the entire building process, which will allow you to capture the maximum return on your investment. Clearly showing the benefits and helping the buyer understand them will bring the transaction to a successful and smooth closing.
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| Advantages of Investing in Real Estate |
Why invest in real estate? We can give you one word - profit! Owning real estate can often lead to returns that are double those of more conservative investments such as mutual funds or the stock market. Some of these advantages include:
- Tax Breaks: One tax break you can receive is the creation of a passive loss. This basically means that you can show an income loss on paper to help offset ordinary income gains. Amongst the many other tax rewards, if you follow the 1031 exchange rules, you can roll your gain into a new investment and defer your tax!
- Appreciation: Appreciation is the continuing increase in the value of a property over time. To put this advantage in simple terms, if you buy a property at $300k and then sell it for $550k a year later, you can make a significant profit on the deal.
- Monthly Cash Flow: Many types of real estate investing include buying a property and renting it out instead of "flipping" the property. With this type of investment, you can earn a monthly cash flow to use on other investments.
- Real Estate is a Tangible Asset: Basically, this means that you have an asset that you can see, touch and of course sell at any time.
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