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Advantages of Investing

Benefits of Investing In Real Estate

1. Diversified Income Sources

Property investment takes many forms. You can buy and sell, flip, or rent a property. Each of these investment options has a massive potential to bring you excellent returns.

In the U.S., rent and housing prices have been rising year after year. Therefore, you have a chance to make decent rental income and also equity and capital gains.

Investing alongside of Future RE Capital will give you access to multiple types of properties including residential, commercial, apartment buildings, shopping centers and hotels. 

2. Tax Benefits

Future RE Capital Management sets the pace when it comes to tax benefits. Investment partners  who partner with Future RE Capital receive tax incentives. For REITs, Individual REIT shareholders can deduct 20% of the taxable REIT dividend income they receive (but not for dividends that qualify for the capital gains rates). There is no cap on the deduction, no wage restriction and itemized deductions are not required to receive this benefit.

3. Fewer Risks

Compared to other investment options such as stocks, property investment tends to have fewer risks, especially when you are doing it long-term. In most healthy real estate markets, home prices go up every year, and equity gains also go up with time. So, the longer you retain your property, the higher the returns, meaning the risk is definitely lower if you opt for this strategy.

4. Immune To Inflation

With investment properties, you have a hedge against inflation. When the rate is high, property values and rent also have to keep pace. This means that a rise in the cost of living will work to your advantage.

What is a REIT?

A Real Estate Investment Trust (REIT) is a company (or group of companies) carrying on a property rental business which operates income-producing properties and meets certain conditions. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping centers, hotels and commercial forests. Some REITs engage in financing real estate.

Why a REIT?

A real estate investment trust (REIT) is a property investment company which, very broadly, replicates (from a tax perspective) direct investment in U.S. properties. The Company avoids the additional layer of taxes that can arise when investing through a corporate structure. It also enables exempt investors to benefit from their own tax status. 

Key Features of A REIT?

Below are some of the key features of a REIT:

  • Company (or group of companies) carrying on a property rental business for income-producing properties
  • Exempt from corporation tax on both rental income and gains on sales of investment properties (and shares in property investment companies) 
  • Withholding tax on property income distributions
  • Tax is levied at investor level (subject to the tax status of investors) on property income distributions

Read more about REITS