Property Investing – Equity Build Up & Expenses

by Keeks Cunningham on July 28, 2010

IDEAL is an acronym for the 5 main features of property investing that make it so attractive to investors worldwide: Income, Depreciation, Equity Build Up & Expenses, Appreciation, Leverage.

In my previous posts I reviewed the first two of the 5  features that make  property investing the IDEAL investment: Property Income & Property Depreciation.

Today I want to talk about Equity Build Up & Expenses.

Property Investing – Equity Build Up & Expenses

property-investing-equity

As you pay down the principle of the mortgage loan you are gradually building up your equity stake in the property. So, even if there is no increase in the value of the property over the term of the loan you still end up with an asset with 100% equity at the end of the mortgage loan term.

Expenses such as property management fees, maintenance, insurance, mortgage interest etc., are deductible from the rental income, thereby reducing your tax liability.

If you’re serious about property investing then why not sign up NOW for more insider secrets on Investing in Property. You’ll discover more about how to build wealth using real estate investing and other wealth building strategies at http://www.MillionaireMindsetSecrets.com for FREE

Related Posts:

Property Investing Secrets – Why Property is the IDEAL Investment

The IDEAL Investment – Property Investing Income

The IDEAL Investment – Property Investing Depreciation

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The IDEAL Investment – Property Investing Depreciation

by Keeks Cunningham on July 28, 2010

Property Investing Secrets: Depreciation

property-investing-depreciationIn my previous posts I started explaining why property investing is widely considered the IDEAL investment, IDEAL standning for the 5 main features of property investing that make it so attractive to investors worldwide.

In the last post I spoke if I for Income, today’s post is about D for Depreciation.

A rental home is seen as a depreciable asset just like a car or piece of factory machinery. Rental properties with positive cash flow can show an accounting loss, granting the owner a tax deduction, or, as Robert Kiyosaki calls it, “Phantom Cash Flow”.

Depreciation is an accounting loss and only shows up on paper.

It can result in you being able to turn a small economic profit into a small tax loss. So, even though you could be “loosing” money on paper you could actually be making a monthly cash profit.

The building value (Purchase price – Land Value = Building Value) of residential property is usually depreciated over 27.5 years.  Commercial property is usually depreciated over 39 years.

If you’re serious about property investing then why not sign up NOW for more insider secrets on Investing in Property. You’ll discover more about how to build wealth using real estate investing and other wealth building strategies atwww.MillionaireMindsetSecrets.com for FREE.

Related posts:

Property Investing Secrets – Why Property is the IDEAL Investment

The IDEAL Investment – Property Investing Income

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The IDEAL Investment – Property Investing Income

July 28, 2010

As a young investor you may be more focused on the rise in capital value; whereas someone in their golden years can be more focused on generating income. Property is one asset class that does both, rising in value and generating income. It is often referred to as the “IDEAL” investment.
“IDEAL” is a simple acronym [...]

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Property Investing Secrets – Why Property is the IDEAL Investment

July 27, 2010

So, you’re thinking of investing in property but aren’t sure of how to take advantage of this powerful investment asset. Here I have revealed some of the secrets that experienced property investors have known for years that can make property the “IDEAL” investment.

“IDEAL” is a simple acronym that highlights just some of the key benefits [...]

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Debt Reduction – Debt Snowball vs. Debt Avalanche

July 15, 2010

Is Debt Snowball Better Than Debt Avalanche?
There are a few different debt reduction techniques that are very popular amongst which are the so called “debt snowball” and “debt avalanche” debt reduction methods.
There’s a lot of debate over whether debt snowballing is better than other techniques such as the debt avalanche  debt reduction method (paying the highest [...]

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Debt Reduction – Debt Snowball & Retirement Plans

July 14, 2010

Should One Make Retirement Contributions During the Debt Reduction Process?

In my previous post Debt Reduction – The # 1 Way of Eliminating Debt!? I reviewed the debt snowball technique for debt reduction as one of the most popular way to eliminate debt.
The reason it’s named ‘debt snowball’ is because you start with the smallest debt and [...]

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Debt Reduction – Eliminate Debt The Snowball Way – Steps 4-6

July 12, 2010

In my previous post i reviewed the first 3 steps of the very popular debt reduction technique known as the debt snowball.
The first three steps in using the debt snowball technique to eliminate all your debts were:
Debt Snowball Step #1: List All Your Debts Starting with the Smallest Balance
Debt Snowball Step #2: Only Pay the Minimum Amount [...]

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Debt Reduction – Eliminating Debt The Snowball Way -Steps 1 – 3

July 12, 2010

There are many different ways to eliminate debt.
One very popular technique is known as the debt snowball.
These are the first three steps in using the debt snowball technique to eliminate all your debts and be financially free.
Step # 1: List All Your Debts Starting with the Smallest Balance
List all your loans starting with the [...]

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Debt Reduction – The # 1 Way of Eliminating Debt!?

July 9, 2010

Reducing Debt is a No. 1 priority for anyone who wants to be financially free
There are a few different debt reduction techniques that are very popular. Here we examine one ultra-simple technique known as the ‘debt snowball’ method and ask whether it is the # 1 method of eliminating debt?
There are many different strategies [...]

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How to Get Rich – The Secret Formula!

July 2, 2010

The secret formula to getting rich
In my previous post I talked about Chuck Feeney – the secret billionaire, who quietly amassed massive fortune and just as quietly has been giving it away for the last 30 years.
What’s noteworthy about Feeney’s modus operandi is that he had this one idea in his mind that dictated all [...]

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