It's hard to say no to purchasing real estate in Florida when the government offers $15,000 back to you in tax credits, the banks are offering the lowest interest rates in years and this is a buyer's market giving you the variety of choices in every style and price range. The icing on the cake for non-residents is to become a Florida resident and eliminate your state income tax along with the enjoyment of pleasant weather, blue skies and sparkling waterways.
All of these elements for purchasing may never line up like this again in your lifetime. I recently met an intelligent Floridian who claims to have created his own pension through his many real estate purchases in Brevard County. Granted, this man was a person of wealth, but his challenge, as is most everyone's challenge, is how to invest in a safe manner for retirement. He said he likes to "feel and touch" his investments so he has eliminated the purchase of stocks from his portfolio.
Owning and exchanging real estate has always worked for him in the past. He has now invested all of his holdings and purchased more than a dozen homes. These properties are rented with competitive rental prices and are professionally managed. He is able to depreciate these properties on his income tax each year and he uses the revenue for income or his pension.
On a smaller scale, many of us may be able to do the same, however, this is not something one can accomplish in a short period of time. This done, one purchase at a time, could be a lifetime goal for retirement. Safety measures must be used if real estate is an investment and used for rental purposes.
Meeting with a good accountant to review the advantages of Starker exchanges and the affordability of one's plan to purchase is only the first step. Consulting with a good Realtor on properties and rental rates, consulting with a good banker on mortgage interest rates and consulting with a good financial planner will give a beginner a good start for a great plan.
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