Wealth Building: Real Estate

Build Wealth with New York Real Estate

At Woodberry Wealth Management & Associates, our wealth building services go beyond investing in the stock market. Although investing in stocks can build wealth substantially, you might consider the advantages of adding real estate to your list of assets. Many people do not look at a home ownership as an investment, but it definitely is. Unlike security prices, which tend to move up and down quickly, housing prices usually undergo an uninterrupted price increase over a long period of time. Hence, they may provide a partial hedge against inflation.

We work with reputable, licensed real estate agents in New York. Together, we will help you build wealth by investing in real estate. Did you know there are several forms of real estate investment? These can be divided among two main forms of real estate: undeveloped land and developed land.

Undeveloped land,

which contains no structures, such as farm property, provides excellent investment growth and wealth building potential, but with some risk.

Developed land

can hold residential and/or commercial property, and offers less risk than undeveloped land. Developed land can provide you with steady income from tenants, should you chose to put the property up for rent.

Advantages to Investing In Real Estate

With help from expert real estate agents in New York, you can reap the benefits of real estate investment.

Tax Advantages:

There are some tax advantages to real estate investments. Mortgage interest on first and second homes is deductible (provided the amount of the loan does not exceed the purchase price of the home plus improvements). You can also deduct excess mortgage interest if the loan was used for medical or educational expenses. Profits from the sale of your principal residence are not taxed.

Significant Profit:

You can make huge profits when you invest in low cost property. Often times, investors will purchase property, invest a little money in property improvements, then sell the property for much more than the original purchase price.

Appreciation and Collateral:

Real estate gains value over time. Also, you can use your home as collateral for a future promise, and borrow from the equity you owned in your home.

Mortgages as an Investment

You may think of mortgages only in terms of property you are buying, but they can be attractive investment for wealth building. A mortgage loan is secured by property. If the loan is not repaid, the lender has the right to take possession of the property that has been pledged as security.
Mortgage loans usually tie up your capital for a long time which poses some risk, but with that you are given a higher than normal yield. If you are careful in evaluating the risk factors, mortgages generally fall in the middle range of investment choices. Investing in a mortgage could prove to be a strong component of your wealth building strategy.
Real estate investment can be a great way to build wealth. As part of our comprehensive strategy for wealth building, we work alongside some of the best real estate agents in New York to help you find the most profitable properties for investment.
Contact us today to learn more about wealth building with real estate investments