There are great tax advantages for owning and investing in real estate, tax laws are written to support those people business owners and investors who create jobs and housing.
The laws benefit the risk-takers, who spur the economy of the country, therefore, if you invest capital in your community by buying real estate, you are rewarded with tax breaks so that you can maintain and continue investing while at the same time you provide a valuable social service, base on past experience the government have learned its lesson when they provide 1000-cost housing, it is more efficient to encourage the private sector through tax advantages to perform this services rather than for the government to muddle its way through the important community need of housing they should also provide enabling environment for private investor to come in and invest in real estate.
The government should as a matter of facts allow special tax and legal protections for property owners in the form of legal entities.
How we hold our property becomes very important as our investment increase, you don’t want a legal problem arising of one as such a tenant flipping on stairs of one of our apartment building to put your others holdings and personal assets of risk of a law salt settlement or judgment.
Three Major Types Of Income
- Earner income: this is what you bring home from work in the form of a pay check or salary, you work so hard for Monday to Friday and within the hours of eight in the morning to six in the evening, in a situation where you work in the bank you leave the office maybe 8pm in the night and for those that live in state like Lagos of Nigeria, you leave home 4:30am to a traffic holding and get home 11pm and the day you stopped going to work the year earnings stop.
In some cases you are asked to do a job of a person and you do not
Complain and must meet up the tasks as your boss will have to remind you of many jobless youth waiting for such opportunities you have as if you do not fail on the tasks then ready to answer questions.
- Passive income: this is what comes to you from an investment such as real estate, if you get sick and cannot earn a salary from the job, your real estate investment is working for you and the money that comes in from such investment may not be subject to any social security, tax, medicine.
- Port folio income: this is what comes from the divide ends and increases in value in paper assets such as your shares, stocks, bonds; it is the most popular form of investment income for the masses, because it is easier to manage than the real estate and others investment.
So make your choice of the 3 for me I would prefer passive income a situation you relax and your investment works for you rather than working in investing in port folio that you may likely not receive and divided as the end of the month base on experience in Nigeria.
Please note, real estate becomes n asset when it brings you cash flow investing in real estate you are putting other people’s money to work for you. Make your choice today.