Why Owning Income Property for Retirement Planning Makes Sense
Written by Guest Contributor: Lisa Berling, EA
There are many reasons why owning income property for retirement planning makes sense. Here are my top 4 reasons:
First: real estate enables you to build passive streams of income. Based on solid financial planning, there will be a time when you would access this income to supplement your other sources of revenue streams.
Second: you accumulate wealth through appreciation. Let your renters pay the mortgage and the property taxes while your asset increases in value.
Third: you create positive cash flow with paper loss for tax savings. Depreciation from rental property allows you to use paper losses to offset any profit you make on the rental. Losses generated by depreciation can also be used to offset other taxable income you might have.
And fourth: you can take advantage of special real estate tax benefits such as offsetting your non-passive income with passive losses (note: if you are not actively and materially participating in your real estate then you will have income limitations).
I am available to discuss your current financial position and determine solutions to achieve your retirement goals through real estate which is my area of focus and experience. My email is email@example.com.