Real Estate Investment Tip-Go for a 1031 Exchange
A 1031 Exchange investment would be one of the best of investments that you may be well advised to consider investing in as an investor looking at the real estate market. A 1031 exchange basically can be said to be a tax deferral tool that simply allows you as a real estate investor build your wealth, save on taxes and expand your investment portfolio by leaps and bounds.
Actually, the application of this particular tool, 1031 exchange, is open and applicable to any investor who so looks forward to the sale of an existing property or trade up for higher cash flows. Check out this post and see some of the perks that indeed follow a 1031 exchange. If at all you are so looking forward to make an investment in the real estate market and you are wondering if at all the 1031 exchange would be a good deal for you, then read on in this post and see some of the top benefits of investing this route.
The number one reason why this would sure make for such a sure deal for any savvy investor is considering the tax benefits that it comes with. This is seen in the fact that by choosing to roll one asset into another, you will be able to defer the capital gains taxes that would otherwise be due on the sale of such property. As a matter of fact, this is one approach that will so allow you save thousands and thousands of dollars in taxes.
Secondly, this is a vehicle that, as we have already mentioned at introduction, that will help you greatly when it comes to growing your portfolio and diversifying it as much. You see this when you factor the bit that with a 1031 exchange, investors have the opportunity to take that property of high value and buy multiple properties that have higher returns. Over and above this, in the event that you happen to be so tied with some forms of underperforming assets, then the 1031 exchange approach is such an alternative that would allow you upgrade such undesirable assets. 1031 Exchanges happen to be such a fantastic way to transfer out of those kinds of rental properties that may be overpriced and or underperforming.
Investing in a 1031 exchange is as well considered a long term game plan. This is for the fact that they can be repeated for as long as you want to thus allowing an investor defer these taxes somewhat indefinitely.