Real Estate Investing
How To Invest In Real Estate With (Almost) Zero Taxes
So you just sold one of your stock or bond investments and now you’re about to get crushed with capital gains taxes, right?
Not quite…
You see, you still have options to defer or even completely eliminate those taxes using a new loophole in the system.
Let me explain.
Opportunity Fund Investing is a newly-minted tax-advantaged method of investing in real estate that will accessible to individual investors, not just institutional capital.
What are opportunity funds?
Opportunity Funds are a new tax -advantaged investment vehicles created as part of the Tax Cuts & Jobs Act of 2017.
The concept was introduced as part of the Investing in Opportunity Act – a bipartisan bill that was included alongside the broader tax bill -but has received far less attention until now.
The goal is to help spur greater private-sector investment in targeted communities across the country called Opportunity Zones.
What are opportunity zones?
Opportunity Zones are designated census tracts selected by the state and federal governments for economic development.
Opportunity zones can be found in every state and in urban, suburban and rural areas. These are areas that have historically been passed over by investment capital, and meet certain qualifications with respect to poverty levels and/or sub-median income levels.
Qualifying census tracts must meet a minimum threshold of its population living below the poverty line, and/or a max average income of 80% area median income.
This hardly means, however, that these areas should be unappealing to investors.
Many of the opportunity zones already established are centrally-located infill neighborhoods in thriving metros that, while less affluent than their cities overall, already exhibit signs of economic vibrance and should continue to develop alongside the broader metro.
Market fundamentals already support investments in many of these census tracts. This new system of tax incentives should make such investments all the more compelling.
Why invest in opportunity funds?
Qualifying investments offer three unique and compelling tax advantages – investors can defer paying federal capital gains from recently sold investments until December 31, 2026, reduce that tax payment by up to 15%, and pay as little as zero taxes on their Opportunity Fund investment if held for 10+ years.
Opportunity Fund investing also offers the chance to have material impact on the well-being of under-resourced communities.
This presents the opportunity for individual investors to include real estate in their portfolio of “triple-bottom-line” investments – those that not only yield compelling returns, but also yield positive social impact.
Even if you’re only concerned with net returns, however, the tax advantages alone should pique your interest.
What kind of gains are eligible for tax deferral?
Investors may defer capital gains tax on any recently sold investment – including the sale of stocks, bonds or real estate – so long as those gains are rolled over into an Opportunity Fund investment within 180 days of sale.
Simply put, this new program for tax-advantaged investing is a sea-change in how investors are able to reduce capital gains tax, and carries the potential of funneling huge volumes of capital to communities across the country that need more affordable housing and more efficient access to equity for small business.
If done well and with proper oversight and guidance from the Treasury Department, this may truly create win-win-win investments across the country.
Many markets in the U.S. are suffering from an acute affordable housing shortage.
This exciting new program affords individual investors the chance to invest in the revitalization of neighborhoods across the country, while potentially earning very compelling after-tax returns.
By Sheryl Chapman
As we all know, the economy can be unpredictable at times. Recession is a common phenomenon that can affect the investments in your portfolio.
But don’t worry, there are some sectors that are likely to perform well—even during a recession. Here are five recession-proof investments that you can consider adding to your portfolio.
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1. Consumer staples
Consumer staples are products that are essential to our daily lives, such as food, household goods, and personal care items.
These products are in constant demand, regardless of the economic climate. Companies that produce these items, such as Procter & Gamble and Coca-Cola, are considered recession-proof investments.
These companies have a stable revenue stream that can weather economic downturns.
2. Utilities
Utilities are another recession-resistant investment. People need electricity, gas, and water, regardless of the state of the economy.
Utility companies, such as Duke Energy and American Electric Power, have a steady stream of revenue and provide investors with a reliable source of income.
3. Healthcare
The healthcare industry is recession-proof because it provides essential services that people cannot do without. Companies that provide healthcare services or products, such as Johnson & Johnson and UnitedHealth Group, are likely to remain profitable during a recession.
4. Gold
Gold is a safe-haven investment that many investors turn to during times of economic uncertainty. Gold prices tend to rise during recessions because it is seen as a store of value. Investors can buy physical gold, gold ETFs, or invest in gold mining stocks.
GUIDE: 3 Ways To Invest In Gold In 3 Minutes Or Less 🔑📲
5. Treasury bonds
Treasury bonds are considered to be one of the safest investments during a recession.
These bonds are issued by the US government and are backed by the full faith and credit of the government. Treasury bonds provide a fixed income and are considered to be a low-risk investment.
In conclusion, these five investments are considered to be recession-proof because they provide essential products or services that people cannot do without.
Adding these investments to your portfolio can provide stability during times of economic uncertainty.
Airbnb has revolutionized the travel industry by providing an affordable and unique way for travelers to experience different destinations.
With over 7 million listings worldwide, it’s safe to say that Airbnb has become one of the most popular ways for travelers to find lodging.
However, as a host, one of the most challenging decisions you’ll face is determining the right price for your listing.
Pricing your Airbnb listing correctly is critical to your success as a host, as it can make or break your profitability.
Here are some tips to help you price your Airbnb listing for maximum profit:
Know Your Market
Before you set your price, it’s essential to research the market in your area. Look at other listings in your neighborhood, paying attention to the size of the property, amenities, and location. Check the availability of your competitors and the average price they charge. This information will help you determine your pricing strategy and ensure that your listing is competitive.
Consider Seasonal Demand
Seasonal demand plays a significant role in the pricing of your Airbnb listing. During peak seasons, such as holidays, festivals, and major events, you can charge higher rates. Conversely, during low seasons, you’ll need to lower your prices to attract guests. Keep track of events happening in your area and adjust your prices accordingly.
Offer Discounts
Offering discounts is an effective way to attract guests and increase your occupancy rate. Consider offering discounts for extended stays, early bookings, or last-minute reservations. You can also offer discounts to guests who leave a positive review or refer new guests to your listing.
Calculate Your Costs
To ensure that your pricing strategy is profitable, you need to calculate your costs. Take into account expenses such as cleaning fees, utilities, maintenance, and taxes. Factor in your time and effort as well. Your goal is to set a price that will cover all your costs while still allowing you to make a profit.
Be Flexible
Finally, be flexible with your pricing strategy. Test different prices and see how they affect your occupancy rate and profitability. Monitor your competition regularly and adjust your prices accordingly. Remember that the market is constantly changing, and your pricing strategy needs to adapt to stay competitive.
In conclusion, pricing your Airbnb listing for maximum profit is a crucial aspect of your success as a host. By researching your market, considering seasonal demand, offering discounts, calculating your costs, and being flexible, you can set the right price for your listing and maximize your profitability.
Happy hosting!
5 REITs that own iconic buildings you can buy today
Real Estate Investment Trusts (REITs) are companies that own and operate income-generating real estate properties.
Investing in REITs has become an increasingly popular way to own a piece of the real estate market without having to buy individual properties.
And you can buy them in the next 5 minutes on the NYCE app…with $5 or less.
Here are five REITs that own iconic buildings across the United States that you can invest in today:
- Empire State Realty Trust, Inc. (ESRT) – ESRT owns the famous Empire State Building in New York City, as well as several other properties in the city.
- Vornado Realty Trust (VNO) – VNO owns the iconic 555 California Street building in San Francisco, which was once the tallest building on the West Coast.
- Boston Properties, Inc. (BXP) – BXP owns several iconic buildings in the United States, including the John Hancock Tower in Boston and the Salesforce Tower in San Francisco.
- SL Green Realty Corp. (SLG) – SLG owns several iconic properties in New York City, including One Vanderbilt, which is currently the fourth-tallest building in the city.
- Macerich Company (MAC) – MAC owns several high-end shopping centers across the United States, including the iconic Santa Monica Place in California.
************************************************************************************************LEARN: How to own real estate with $1000 or less.
Investing in REITs can provide diversification and potentially higher returns than investing in individual properties. However, as with any investment, it is important to do your research and understand the risks involved.
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