Tropical Property Markets To Invest In

Tropical Property Markets To Invest In

An economic upswing that began in 2013 has North American baby boomers searching for buried treasure. It comes in the form of an inventory of affordable properties in several tropical regions that are suitable for both retirement and investing. Savvy investors are taking advantage of the opportunity to invest in rentals for snowbirds and furnish themselves with a second home in a Caribbean paradise. Experts in the following locals say now is the time to start digging for investment treasures that will pay off big time in the future.

Belize
Belize is located in mid-Cental America and is only an hour and 45-minute flight from Miami. Buyers can rest assured that the economy is stable, and the real estate market has matured. Investors will find no international pitfalls to trap them legally since Belize is a part of the British Commonwealth and there is no capital gain tax. Properties are less expensive than many other places in the Caribbean. Hot spots include the Cayo District and San Pedro.

Cayman Islands
The Cayman Islands also have a favorable economic forecast along with a popular vacation lifestyle. Their rules for international transactions strict and the British colony’s government is friendly to foreign investors. Titles can go in company or personal names. The Caymans have a housing inventory that is affordably priced. The average price of a two-bedroom condo is $350,000. Rented out at $2,500 net, the return on investment will be seven percent over time. Additionally, there is no income tax, property tax, or capital gain.

Costa Rica
A varied natural landscape and a politically and economically stable country make Costa Rica a popular investment choice. A rising GPD is fueling investor interest. Canadian and U.S. tourists and snowbirds keep the rental market strong. Property can be bought easily with a simple tourist visa, and foreigners have the same rights as locals in terms of property ownership. Hot spots include the Southern zone and the northern Pacific coast.

The Turks and Caicos Islands
Located north of the Dominican Republic, the Turks and Caicos Islands have one of the Caribbean region’s fastest growing real estate markets. Depending on size and location, investors will pay between $250,000 and $800,000 for a condo and $250,000 for a home. Most properties come fully furnished because there is no room to store furniture. The Turks and Caicos have relaxed rules for conducting business. There are no taxes, but there is a one-time stamp duty payable at the time of purchase. These islands have a bright future as a vacationer’s paradise.

How the New Tax Laws Will Affect Real Estate Investors

How the New Tax Laws Will Affect Real Estate Investors

How you prepare for taxes can be the difference between making a huge profit or ending up in the hole following a real estate investment. Due to some reforms to US tax regulations, real estate investors now have even more opportunities to save money, but there are also some new challenges they may encounter. These changes are likely to make a big difference for real estate investors in the upcoming years, so it is important to fully understand them.

Deducting Loss Is More Difficult

Most investors end up with losses in the first few years of owning a property, and they used to be able to deduct this loss on their taxes. However, with the new legislation in place, people will not be able to deduct a loss for the tax year it occurs. Instead, they have to wait and carry over the loss to the next year. For new investors, this can make finances a little harder to keep up with especially without the cash flow from their investment.

Tax Brackets Are Slightly More Favorable

The adjusted tax brackets for the tax law mean that some people do not have to pay quite as much taxes as they used to. The savings are only very high for those in the highest tax brackets, but even people in lower tax brackets can still expect to save a little money with the new tax law.

Doubled Deductions for Depreciation

Real estate investors now have the option of doubling up to $1 million for certain properties. The regulations for using Section 179 deductions are a little complicated, but if you qualify, you can deduct things like furnishing, real estate depreciation, and interior improvements.

Investors Are Offered a QBI Deduction

A new advantage for investors will be the Qualified Business Income Deduction. This lets people take a 20 percent deduction on certain types of income, so it can provide big savings. Any investment operated as a sole proprietorship, partnership, trust, estate, or S corporation may qualify.

More Properties Qualify for Improvement Expense Deductions

Changes to regulations mean that investors may be able to offset up to 100 percent of their expenses for improving certain types of properties. Not all properties qualify now, but investors can use the deduction for many types of restaurant, retain, and leasehold properties.

With the new regulations in place, real estate investors need to be wary of what an impact these changes make on their investments. Make sure to brush up on your research to find out how these new tax regulations will affect you.
What is Real Estate Crowdfunding?

What is Real Estate Crowdfunding?

What is real estate crowdfunding?
Crowdfunding may not be a new option in real estate investing, but it is opening up new opportunities for young investors. Bringing this option to a larger community via the internet allows investors to take advantage of opportunities outside of their local markets. It also provides a forum for developers to find new investors and to share exciting news and updates about their projects. While real estate crowdfunding is an opportunity that benefits developers and investors equally, it still carries the risk that accompanies any real estate investment.
The Advantages of Crowdfunding
One of the greatest advantages of real estate crowdfunding is that it provides an opportunity for young investors to get started with little capital. Instead of having to come up with a larger portion of investment capital, investors can contribute what they have to a project. Their share of returns will be smaller, but it is an opportunity to get involved.
Additionally, investors can learn more about the real estate development process. As investors, they can offer their insights and contribute to the decision-making process. Since there are so many developers turning toward crowdfunding, investors have greater choice than ever before as well. They can choose among projects that appeal to their interests, while also selecting opportunities that represent the best chances for growth.
The Disadvantages of Crowdfunding
While crowdfunding does offer more opportunities, the risks that accompany those opportunities are just as real. Like any real estate investment, crowdfunding projects also rely on the strength of a given market. If that market suffers a hit, the investor will most likely lose money on the project.
Regarding losses, the developer will not be able to pay interest or promised returns on the investment. This is known as investment default and the risk is higher for crowdfunding investors than it would be in peer-to-peer or direct investing. Even when you thoroughly research a project before committing to it, this risk of loss is still present and may only take a slight downturn in the market.
While real estate crowdfunding does carry risk, the potential for growth and profit is still enticing. These options allow investors to get started with little capital, letting them grow their funds over time. It’s not only a good opportunity for young investors. It offers seasoned real estate investors to pick and choose among the most promising projects. What are your thoughts on real estate crowdfunding?
3 Habits For Successful Real Estate Investment

3 Habits For Successful Real Estate Investment

Real estate investment is generally considered to be one of the least risky types of investment. This is partly due to the fact that there are any number of ways to make money off of real estate investments, as opposed to other more traditional methods of investment. That being said, no investment is 100% foolproof, so being a successful real estate investor requires following some fairly specific disciplines. Here are 3 habits of successful real estate investors.

1. Do your research

Doing your research as an investor means understanding both the market as a whole, the specific area you want to invest in and the type of real estate you are investing in. It means thoroughly vetting any partners you might be thinking of investing with as well as any attractive offers you come across. In fact, the more attractive an offer appears to be, the more carefully you want to research it. Nowhere is the old adage “if it’s too good to be true, it probably is” more true than in the world of investment. That doesn’t mean there are no “golden” opportunities out there, it just means most wealthy real estate investors generally got that way by being hugely skeptical and extremely pessimistic.

2. Develop a niche and stick with it

While Bo Jackson may have been outstanding at both baseball and Football, there is a reason most professional athletes stick with one sport. To be the best at one thing, you generally have to focus on that one thing - no matter how great you might be at a number of things. That doesn’t mean that any number of professional athletes don’t dabble a bit in a number of sports such as golf or skiing, it just means they reserve their primary energies, efforts and focus for one specific thing.

3. Don’t go it alone

Not only will you want to develop a network of educated experts to help you make the best decisions, but cultivating fellow investors can also help you minimize your risk. This doesn’t mean you need to partner with someone on every investment, but you can also tackle bigger fish with a team. If you want to do more than just dabble in real estate investment, you will want to build a strong, solid, stable network of support.

If you are currently a real estate investor or have dreams of being one, forming these habits will be incredibly beneficial.