If you are looking for a way to invest your money, then commercial real estate is a fantastic approach to take. With the year coming to a close, you may think that the ideal time to buy commercial real estate is over, however, this isn’t the case. In fact, there are still plenty of reasons why you should buy commercial real estate before the end of the year.
During the fourth quarter, commercial estate market quiets down. Not only is it a busy time of year for personal reasons but the weather will likely slow down the interest in viewing properties. This means that there is a much lower amount of competition then there otherwise would be during other parts of the year.
Low interest rates
Despite many murmurings that the federal funds rates are about to rise, it seems that these rates are staying low. This means that the interest rates on loans are low. However, there is still an expectation that the rates are going to rise, particularly during the early part of next year, which will make a big difference to how much you can realistically afford to borrow based on the monthly payments.
Ten to fifteen percent is the average down payment for a commercial real estate loan. If you pay anything less then you may end up losing money due to the expensive commercial mortgage insurance that is often applied.
Owing an investment property means you can deduct far more expenses on your taxes than without an investment. All typical and necessary expenses used to generate taxable income from rental property can be deducted against rental income.
Our Federal tax system
Our federal tax system collects $2.1 trillion every year from taxpayers. Basically, the government takes in 2.1 trillion, but it gives out 17.1 trillion in tax savings to real estate investors and other business people. Get on board!