Investors are always looking for ways to invest their money and feel confident and secure in their decisions. Historically, the real estate market has been a relatively safe place to invest their money. It is a relatively slow-moving market with indicators of positive and negative trends. The 1031 Exchange laws are a great way to protect against capital gain penalties and taxes. There are also many tax advantages to owning real estate. Here are three ways investors are using real estate in Hamilton as a safe haven.
Investing in the Real Estate Market
The first way investors are using real estate in Hamilton as a safe haven is to simply invest in the real estate market. They are pulling their money out of the stock market and investing in real estate rental properties, including single-family and multi-family properties. This market is perceived to be stable and is usually completely unrelated to the stock market trends. Rental properties are a great way to make reliable, steady returns from investments. There is a huge audience in the market looking for rental properties.
The second way investors are using real estate in Hamilton as a safe haven is to take advantage of the 1031 exchange, trading properties in kind for other properties. Using this strategy, investors are spared from capital gain taxes. Using the 1031 exchange laws coupled with depreciation and other tax strategies will save investors from not only the capital gain taxes but other taxes in general.
The third way investors are using real estate in Hamilton as a safe haven is to take out tax-free loans against their property and keep real estate and exemptions that go along with it. Serious real estate investors can utilize multiple tax laws to never pay taxes or gain penalties on their real estate. You must be certain to follow all guidelines to stay in compliance. If you are not 100% familiar with the stipulations, feel free to give us a call.
Other tax-free or tax-deferred strategies may include investments in various accounts, including SDIRA’s (or Self Directed Individual Retirement Arrangements) where you can make contributions to funds to invest in real estate and not be taxed on the money invested. This investment strategy has restrictions. There are contribution limits per year and a restriction on who you can work with, buy for and sell to. IRAs are usually investments into the stock market, but SDIRA’s can be used for a wider variety of investments including residential property and multifamily properties that can be used as rental properties, commercial property, vacant land, and even foreign property! What a great way to set up for retirement.
Depending on your level of real estate investment experience and who your network of real estate professionals and investors are, you can network find the best strategies to work out ways you and your investments can get the most out of the various laws and options available to you to make the wisest decisions and use real estate in Hamilton or ON in general as a safe haven. Anyone can take advantage of these strategies! If you do not have a large network yet, or even if you do, give Mark Silenzi a call today at 1 (905) 961-0563 to discuss your investments and ways other investors are using real estate in Hamilton as a safe haven. We can help you figure out the best way to utilize investment strategies and leverage tax laws to your advantage. We can also help you find your next investment properties in Hamilton to utilize these strategies.