Real estate depreciation sounds boring and it kinda is, but that doesn't mean it can't make you a lot of money. Indeed, depreciation is one of the biggest benefits of real estate investment as it allows you to substantially reduce your tax bill.
In this video, we explain why real estate depreciation is so powerful. Indeed, it's the D in the semi-famous IDEAL acronym for why real estate investing is so great:
Of course, you should always remember to talk to a certified accountant for tax questions before making any financial decisions.
Previous Episodes -How to Positively Resolve Tenant Disputes (Property Management) -How to Manage Collections and Delinquency - A Guide to Due Diligence for Buying Houses - How to Find Banks for Your Investment Properties - A Crash Course on Building a Buy and Hold Real Estate Business - Is the Economy on the Edge of a Cliff??? How Should Real Estate Investors Respond? - An Introduction Into Buying Portfolios -Why Buy and Hold is So Powerful - In-House or Outhouse Management - Moving to California? - Doing Maintenance Right - Should You Accept Pets in Your Rentals? - Grading Real Estate Calculations
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I had the honor of being selected by Ingram's Magazine as one of its 40 Under Forty for 2021. Here is the write up they had in their annual edition, Thank you to Joe, Dennis, Madison and everyone else at Ingram's. I am very humbled by the honor!
Apparently the United States government has a lot of debt. Who knew? The gargantuan $27 trillion debt (which is growing all the time and getting worse with each succesive president) goes to a lot of places. That's what my newest article for BiggerPockets is about. It uses info gathered by and put into nice, handy graphics by The Visual Capitalist to make the point. As you can see, the debt is growing in an unsustainable and almost exponential way: Yeah, it's bad. As the piece notes, “U.S. debt was relatively moderate between 1994 to 2007, averaging 60% of GDP over the timeframe. This took a drastic turn during the Global Financial Crisis, with debt climbing to 95% of GDP by 2012. For more anaylsis (and cool charts) check the article out!
So the CIA's ever oblivious Twitter account just tweeted this gem:
Of course, those Stinger Missle Launchers were used by the Mujahideen to defeat the Soviet Union in the Soviet-Afghan War. All good, right?
Well, maybe not. After all, who was one of the key backers of the Mujahideen? Well it was this guy:
Well played CIA. Well played.
So it's no secret that home prices in the United States have gone nuts recently. According to Core Logic, "National home prices increased 7.3% year over year in October 2020." And it's just gotten crazier since, according to Politico,
Home prices in January — typically a slow month for the market — were up 14 percent over the same month the previous year, while sales jumped 24 percent, despite an unemployment rate that was almost twice as high. Demand for existing homes is so strong that the average residence is on the market for just three weeks, and inventory is at a record low after seeing its steepest drop last year since the data was first tracked in 1999.
And this is after almost 10 years of uninterrupted house price appreciation!
But if you think the United States is nuts, check out this video and look where Canada currently stands:
So the United States is up 55 percent since 2000 even with the 2008 crash. And while France and the UK are worse, good lord Canada...
168.4 percent. Unreal. OK, it's not really new. My piece in BiggerPockets is from February 9th, but I forgot to post it here so I'll go ahead and do it now. Shockingly, there's a lot of real estate out there and it's worth a huge amount of money; about $280 million according to The Visual Capitalist. ...[It] charts the entirety of (estimated) world wealth by highlighting each $100 billion with a small square. As it notes (and is rather obvious), $100 billion is a rather large number. Here's what one $100 billion block looks like: And if you read the article, it shows just how many $100 billion blocks of real estate (and other assets) exist in the world today. Check the article out, it's humbling to say the least.
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Andrew Syrios"Every day is a new life to the wise man." Archives
November 2022
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