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Taxes Are Our Best Friend
Ken Grodner, REALTOR®
I have recently read a book, Tax-Free Wealth, How to Build Massive Wealth by Permanently Lowering your Taxes by Tom Wheelwright.
The book contains over 20 strategies for reducing taxes - here are a few excerpts from the book I found particularly fascinating:
Of the 5800 pages of the tax code, 30 are dedicated to raising taxes and the other 5700 plus on reducing taxes.
Real estate investors enjoy great financial benefits. You can buy a property mostly with the bank's money and get a tenant to pay enough rent to make your payments to the bank and have a little left over. When you buy real estate right, history shows it increases over time as illustrated below.
The tax benefits (including depreciation) can be greater than both the cash flow and increase in value. Depreciation is like magic, it creates money out of thin air!
Here are a few more strategies I think you might find helpful:
- Shift income from your business to your children, grandchildren, or your parents and then have them take the money and invest in a business you control so you can direct how the money is spent
- Turn business income into passive income by giving part of the business to a member of the family that does not work in the business (you still maintain control); their share is passive income that can be used to offset passive real estate losses
- Trade stocks and options in a self-directed Roth IRA to permanently avoid taxes
Buying vs Renting: Why buying is a smart investment in towns with strong universities. Are you a parent considering buying or renting for your college student? Are you looking for a smarter way to invest in this accommodation, especially in towns with strong universities, like Tuscaloosa and Birmingham? Vikki and Ken Grodner from the Hospitality Network Group at Keller Williams are here to shed light on why buying real estate in Alabama is a game-changer.
2024 Real Estate Market – Insights at from Industry Leaders
Winter brings with it colder temperatures and a range of challenges for your home. However, with a few simple steps, you can prepare your home for the chilly weather and ensure a cozy and energy-efficient space throughout the season.
During this high interest rate environment, our agents with the Hospitality Network Group at Keller Williams are helping our homebuyers reduce their monthly payment with temporary interest rate buydowns.
Home ownership is always an exciting, and confusing, proposition. Some recent items in the news have only continued to muddy the waters in terms of understanding home ownership.
The Hospitality Network Group was recently on hand for the annual conference of top Keller Williams agents, Mega Agent Camp. One of the highlights of attending this conference is the opportunity to hear from our company and industry thought leaders on the current and future state of real estate.
While we are seeing the return of color in home decor (have you had enough gray and stark white yet?), another hot interior trend for 2023 is what is known as "quiet luxury." Quiet luxury emphasizes calm, serene spaces that are sophisticated, elegant and maintain a timeless appeal. It is a minimalism with a hug, using high quality materials with texture and richness that pick up the warmer tones in nature and in life. As is often the case, tastes evolve from both a weariness to recent, sometimes overdone design trends and from other influences, such as fashion runways.
As the world becomes more aware of the impact we have on our environment, many industries are striving to become more sustainable. The real estate industry is no exception, with an increasing number of eco-friendly real estate options and sustainable home features becoming more prevalent in the market. We believe that by promoting and offering sustainable homes and eco-friendly real estate options, we can help protect our planet and make a positive impact on our community.
Given what we read and see about inflation and recession, both in the US and globally, a number of our clients have expressed concern over a possible market correction and have asked if it is prudent to wait to buy after a correction.
Vikki and I just came back from Anaheim, CA for Keller Williams’ annual real estate event and we are excited to share thoughts from some of the top thought-leaders in real estate. This includes the work of an economist who spends every day looking and analyzing trends from a global and industry perspective.
Earlier this week I had the opportunity to hear Barry Habib provide his outlook on the housing market and mortgage rates in the first half of 2023.
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