Real estate has long been considered a solid investment for many reasons. It is a relatively safe and easy way for people in Crofton and throughout Anne Arundel County to build wealth beginning with a small amount of money. If you are interested in investing in real estate, I’d be happy to help you find the right properties.

Here are some of the ways investing in real estate in Anne Arundel County can help you build an investment portfolio.

1. Real estate investments can provide you with a reliable and steady cash flow. Investing in rental properties is relatively easy as expenses are predictable and if your properties remain occupied you know what to expect in terms of profit margin.

2. Real estate appreciates in value. Real estate consistently appreciates, even during economic downturns, making it one of the more reliable investments in Anne Arundel County. On average, real estate in the US appreciates between 3-5% annually.

3. Real estate investments help you retire, whether that be in Crofton, Annapolis or another part of the country. If you have been paying on your mortgage throughout your working years, you will experience greater cash flow as you near the end of your mortgage term and the principal is paid off.

4. Real estate sales are taxed at a lower rate than other income. When you sell your property, you are taxed short- or long-term capital gains which are usually lower than income tax brackets.

5. Real estate equity can be leveraged. One of the most attractive reasons for investing in real estate is the ability to leverage your money. When you take out a mortgage to purchase property in Anne Arundel County you reduce the amount of capital required. As you build up equity in the property, you borrow against the equity or refinance the original loan, freeing up cash to buy another property.

6. You have control to improve upon your asset. Unlike an investment in stock, where you have no control over how it performs, you can improve upon your real estate investment. Updating or upgrading systems, finishes, appliances, and landscaping helps build value in your investment.

7. Real estate gains taxes can be deferred. Under the 1031 exchange tax code, you can invest the gains from the sale in one property to the purchase of another property without paying taxes on the gains.

8. Real estate investments are depreciable. This is confusing, but you can legally claim a depreciation expense on an investment property even though the value of your investment property is actually appreciating. The depreciation deduction allows investors to generate a higher cash flow while reporting a lower income for tax purposes.

Contact me if you have questions or you are ready to make a move. I am here to help.

Buying a home in Annapolis feels like a super exciting experience. You’re dreaming of your new kitchen, the yard for the dogs and/or kids; emotions quickly start running sky-high.

Sometimes, however,  those emotions can cloud the more important things you want to think about that you may regret not paying attention to until after you’ve moved in.

Following are five recommendations I advise my clients moving into or within Annapolis to consider during their buying process, so they experience the thrill of loving where they live. As I always say, it’s I like to keep it real in real estate!

Know your ‘all in’ monthly costs

Understanding your monthly costs goes beyond just your monthly mortgage payment.

Most homeowners should budget for HOA dues, utilities, lawn care, and home maintenance.

The age of your major appliances, such as your water heater or HVAC system, is important, and servicing them consistently will ensure they work correctly and help you prolong the need to replace them.

Think about your commute

While it’s become more common for people to work from home, many organizations have returned to the in-office format, and drive time will significantly impact the quality of your life.

Determine ahead of time how much time you’re comfortable spending in your car commuting so you can plan accordingly. Realtor.com’s drive time commute filter is a great tool to use in your planning.

Preparing for a positive commute might look like listening to your favorite podcasts, audiobooks, and great music. And if your drive time hits close to an hour or more, you may consider packing snacks. They’ll help you avoid arriving back at home hangry and possibly unleashing road rage while on the road.

Neighborhood Noise Levels

When buying a home in Annapolis, we recommend that you visit your new neighborhood at different times of the day.

Stop by before and after school, early in the morning, and into the evening. Just park nearby and pay attention to the activity happening while you’re there. This will help you avoid moving into your new home only to learn there’s a train that runs each morning at 5 am.

Think About Seasonal

It can sound exciting to buy a home in Annapolis on one acre of land until you experience the amount of time it takes to maintain a yard and garden of that size.

• What about big trees?
• Will you look forward to spending hours raking leaves in the fall, or would you prefer a newer home with less landscaping?

Remember that sometimes a really big home sounds like fun until you’re tasked with cleaning five bedrooms and three bathrooms.

Layout

When you’re house hunting in Annapolis, it’s a good idea to assess the location, condition, and price of the home, but you’ll also want to give some thought to the layout.

• West-facing rooms usually get hotter in the summertime.
• Do you like stairs? Running up and down stairs is great exercise but can get a little old if you’re always in need of accessing things by way of two floors.
• How much driveway will you need to shovel in the winter? Do you want to shovel snow uphill, or is a flat driveway more your style? Will your car make it up your driveway in the winter months? If not, are you willing to invest in 4-wheel or all-wheel drive?

The layout of your new home is essential in creating an enjoyable living experience. Remember to think about the way your family lives and make sure your floor plan is the right match.

Last but not least, consider checking out my free Neighborhood News emails for the areas you are considering. You can sign up here.

As you give some thought to these recommendations, you’ll be sure to set yourself up for buying success.

Contact me if you have questions or you are ready to make a move. I am here to help.