Investment in real estate have enormous wealth-building strategy. Many people have enormous wealth, and investment in dwellings for rent.

Unfortunately, some owners of investment property to learn how to use the capital so that the maximum tax deduction, in the formulation and to ensure their own profit. Instead, they are open to fluctuations in the prices of residential real estate market. These fluctuations can be eliminated or severely restricted in their own institution.

Until the end of the housing boom?

There is no doubt, is nearing completion, huge leap in housing construction. Over the past four years, the value neslýchaný property prices. The question is what happens when the market cool? We only prices plateau or decline in real prices? Although no one knows, a clear consensus should move owners to maintain justice, while they can.

Protection of property acquired

Protection of capital gains from investments in real estate requires careful planning. The influence that strategy is very simple, but it can be complex good. Remember, it merely a prelude to investment property taxes. Must contact us for more information.

Investments in real estate tax strategies to protect your goods and services to ensure access. Páky This can be explained by example.

Scenario 1 – without a tax strategy

Suppose you bought a rental property in 1999 to $ 250000 nothing. In July 2005, is a combination of loan payments and understanding, which led to a profit of $ 250000. Do you have enormous wealth, but if in danger. If prices fall twenty percent next year, and a loss of $ 100000 on your site for the rental of real estate.

Scenario 2 – with the strategy of tax

We will use exactly the same scenario. July 2005 at $ 250000 you rental properties in the capital, but this risk. With a decision on the implementation of investment in real estate tax strategies and occur in May.

Our goal is to protect the $ 250000 profit from rental properties, while the ceiling to reduce taxes. The first step is to refinance the house, and a majority interest only loan. Percentage of dividends at home and in addition to the stock indices of insurance products. The percentage of equity that this amount will be paid on your loan. Typical is adapted to your loan amount to pay.

We will return to the scenario, what happens if property prices drop from 20% in the coming years? Do not have to suffer from a loss of $ 100000, because the profit lies in the stock indices of insurance products. It is essentially a water supply and sanitation, and protection of your record profits in scholarships on the basis of income.

Aha, but is improving.

Equity Index Insurance

The level of investment from not only the insurance policy. Instead, the policy that we use is linked to stock market index. What if the stock market may suffer losses? Do not worry, and this puts you make sure that never loses the dollar, even if the market crash. If the stock market crash, that you simply credit policy with nominal growth for this year. In all other years, this policy would be brought to the exhibition. In addition to all this money in insurance products are increasingly exempt from taxation.

What is completed? First, you have to protect your rental property shares in the profits of the house price fluctuations. Secondly, you have private property to benefit from growth in both channels, and the capital market and assess the housing. Thirdly, I had quoted the tax base and growth [of the value of the property] tax-free growth] insurance [.

With housing loans for cooling purposes, and this strategy in an effective and the closure of its profits. Preserving the capital gains should be the main objective of the investment owner.