I’ve been listening a lot to the new budget proposed by Obama and there is a lot that we should be concerned with. Let me first preface this by saying that I would like nothing more than for this to turn our economy around and for everything to work out as planned for our President. I just don’t agree with the socialist view of taking from the “rich” and giving to the poor. If you think the “rich” are just people that make more than you, think again. That classification keeps going lower and encompassing more and more people, Wealthy Lose out as Others Gain. There are also taxes that aren’t called taxes that will affect everyone, and a reduction of write-offs and tax raises for businesses. Regardless of your political views, taxes are increasing for YOU.

What does this mean for you? Well, taxes are increasing and it doesn’t look like there’s much we can do about that. What you need to do is plan for these increases by creating tax advantaged income and creating more write-offs. One of the best ways to do this is through the ownership of cash flow real estate that creates passive income and many write-offs including depreciation. I’m not one to just look at how you can reduce your taxes, however, and I’m sure your CPA can explain all of the tax advantages of real estate. Just know that there are many tax advantages to owning real estate.

What about the income? Well, tax write-offs aren’t great without income are they? Real estate generates great income from rents but that’s not where it ends. You get pay down on a mortgage and long-term appreciation. The great thing about real estate is that over time it always increases in value, especially when you’re buying at such a discounted rate in Detroit right now! When you add up all of the cash flow from rent and future appreciation, you have a better return than you can get anywhere. I know. It’s hard to believe that there can be a better return than you can get in the stock market right now but it’s true!

Real estate investing has gone back to its roots in rental real estate and that’s great for you. Rental real estate is a conservative investment that is proven to create wealth. Add to that the fact that you can buy at such low price points in Detroit right now and taking action right now and purchasing real estate becomes a must!

Successfully Yours,
Jared Pomranky
Detroit Market Expert

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