Learning how to invest in property is a great way to also learn about safe investments. Investment groups and individuals can learn from each other. Any new business investment venture, whether silent or active, should start with a goal plan. Always consider the source of the information that you operate from for the best overall property investment advice.
Sell a Home
One of the safest
ways to invest in property is to purchase a single family home and plan
to sell it after living in it for two years. Under the Taxpayer Relief
Act, purchasers could exclude a percentage of the capital gain earned so
that it could be reinvested into another home. This can be an
investment boon because the sale of the house could be virtually tax
free. See a tax adviser who is familiar with real estate taxes to plan
out the structure of this type of venture.
Home Sale Qualifications
qualify, the home you are selling must have been your primary residence
as a couple for at least two of the prior five years. While those years
need not be consecutive, if the home is rented out for over three
years, it would be necessary to occupy it once again after that (for at
least two years).
Another way to
safely invest in property is to purchase a home and rent it out rather
than sell it. This can be particularly fruitful in a soft market. You
can find investment money to fix houses by refinancing one that you
already own. You could also decide not to sell your principal home and
make it a rental property instead. When this happens, the new home you
purchase can become your residence so that you could once again qualify
for a lower interest rate on an owner-occupied dwelling. Renting a
residence is one of the safe property investments that many average
people can afford to do easily and profitably, regardless of the sales
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