Category : Property Tax

Real Estate Investment: Top 3 Perks

Imagine this scenario: the bills are paid, the groceries are safely tucked away in the fridge, the car is in good order, and you find yourself with a tidy sum that you’d like to save for a rainy day. But rather than place that money in a typical 401k contribution or deposit in a savings account, why not put your money into something real? Enter real estate investment, a surprisingly-profitable method of securing your funds for the future that’s both efficient and fun! Whether you’re a long-time investor or just getting started, let the experts at RE/MAX Plus use our decades of experience to show you why real estate investment is right for you!

  • Cash flow

 Perhaps THE biggest perk to real estate investment is the steady stream of income that comes from renting out your property. Savvy real estate owners reap a monthly profit even after any maintenance and mortgage fees are paid. The income itself is often much more stable and predictable than playing with personal portfolios and the constant rise-and-fall of the stock market. With the profit received from real estate, many property owners reinvest into making improvements and repairs to their own home or use that income to further their private investments elsewhere. Bottom line: it’s your money, you decide!

  • Tangible Assets

Whether short or long-term investment is your goal, owning real estate gets its best value from being a tangible asset. This means that unlike stocks, CD’s, and other investment opportunities, your actions as the owner can have a direct influence on just how much your property is worth. Putting a new roof on a home or upgrading a kitchen/bathroom can add thousands of dollars to the property value. Re-tenanting a building or adding a secondary service such as in-house laundry hookups can justify an increase in rental charges and improve income performance. Compared to other investments, you have a greater degree of control over performance and value than any other type of investment.

 

  • Taxes, Inflation Hedges, and Equity

Besides the income and control gained as a real estate investor, the perks of tax breaks, inflation hedging, and general equity are extremely valuable. The cash flow you receive from rental charges is not subject to a self-employment tax, mortgage interest, or property taxes; investment properties are all considered write-offs. Plus, with a fixed-rate mortgage, monthly payments remain the same even as inflation increases, protecting your investment’s value. Finally, as the mortgage is paid off, equity is created, which can be used as collateral to fund your retirement, buy another property or even pay for college tuition! The benefits are endless!

Four areas in Rochester’s 19th Ward may become National Historic Districts, which would make certain homeowners eligible for tax savings. These would be the first such districts in the neighborhood.

“From an economic development perspective, we see the 19th Ward as a neighborhood that’s ripe to take advantage of the Homeowner Tax Credit because they’ve got a lot of great architecture that’s pretty intact, really great pockets,” says Caitlin Meives, preservation planner with the Landmark Society. “This can also highlight the 19th Ward as a great neighborhood to live in.”

The area with the best potential to earn the designation is what’s known as the Sibley Tract, Meives says. That would include Wellington, Woodbine, and Rugby avenues, as well as Aberdeen Street.

Other potential districts are Inglewood Drive at Thurston Road; a small section in the area of Chili and West avenues; and another small pocket at Arvine Heights and Elmwood Avenue, north of Genesee Valley Park.

The boundaries are preliminary and may change, say representatives of the 19th Ward Community Association, and not all of the homes within the boundaries would be “contributing” members of the district. Contributing members are homes with significant historic integrity, meaning there haven’t been a lot of changes to their exteriors.

Contributing homeowners are eligible for the state Homeowner Tax Credit, the main advantage to being in a National Historic District, Meives says. The homeowners would be eligible for savings when investing a certain amount in rehabilitation work. They would also get some money back on routine repairs like roof replacement, Meives says.

The Landmark Society did the initial legwork, Meives says, and now it’s up to the 19th Ward Community Association to pursue the designations through the State Historic Preservation Office.

LaShay Harris, head of the Community Association, says having the districts would strengthen the entire neighborhood.

Property Tax Relief?

Today, New York’s taxpayers and job creators have won an historic victory in the fight to rein in out-of-control property taxes. The passage of the 2-percent property tax will not only provide predictability for homeowners and businesses, but it will also positively transform the way in which our local governments operate.

As the leading property tax cap proponent, we thank Governor Cuomo, Senate Majority Leader Skelos, Speaker Silver and other elected leaders for recognizing the importance of this issue and responding to our calls for real property tax relief. We also thank our regional leadership team, allied organizations and individual taxpayers from New York for joining us in the vital charge to make the tax cap a reality.

With the tax cap in place, we remain committed to advancing meaningful mandate relief and look forward to working with local government leaders in the effort to ease the burden on New York’s taxpayers.

What are you thoughts about the property tax relief? Will this help your current housing situation?