Buying income-generating properties: advantages and benefits
Buying residential or commercial properties with the aim of leasing them represents an advantageous investment for several reasons, from a secure continuous income to the tax benefits provided by the law for those who conclude a deal of this type.
In many cases, real estate investment concerns homes or commercial premises that are purchased while they are already leased . In this case, in the real estate sector we speak of an income property . Let’s see what are the characteristics of this type of investment and the tax benefits provided local real estate brokers in Las Vegas, NV.
CONVENIENCE IN THE PURCHASE OF AN INCOME PROPERTY
As anticipated, the expression “income property” indicates a place that is purchased while it is already leased. Investing in a property of this type offers additional advantages, compared to the canonical ones deriving from the purchase of a property to be rented later.
First of all, if the property you are buying is already leased, you will immediately know what its profitability is and how much it will be perceived once the sale is completed . In the event that commercial real estate is purchased with income, the certainty of a prolonged profitability is even greater, since usually the businesses that occupy them do so for long periods of time.
The initially invested capital certainly has the possibility of growing exponentially, although it must take into account the total costs to be incurred for the purchase and maintenance of a leased property, or the costs for management and extraordinary maintenance, which are borne of the property owner in any lease.
A further advantage deriving from an investment of this type concerns the tax benefits that can be used once the sale is concluded , but only in the case of residential properties. In fact, the tax incentives provided for by Italian law are also valid for income-generating properties for those who buy a space with the aim of leasing it.
The benefit reserved for those who buy a property as an investment is the dry coupon . What is it about? An optional tax regime whereby owners of leased properties can choose to have their rental income taxed at a flat rate of 21% or 10% , as appropriate.