Did you know most people become wealthy through real estate investing? There are actually many ways Utah real estate can earn you passive income, including property appreciation, tax advantages and rental income. While experienced stock investors earn a 7% average return on investment, you can be making at least this much in real estate without doing much work at all.
Mortgage interest rates are at an all time low, while the Utah real estate market is slowly but surely improving. This sets up a golden opportunity for you to find prime investment properties to buy and rent out to tenants because, after all, rental properties are always in demand.
Utah Rental IncomeSo, how do you get this passive income stream to work for you? By purchasing Utah real estate with a low down payment, you’re using leverage to maximize your return on investment on the property. As property values steadily rise, so does your profit when you eventually sell. Meanwhile, you receive monthly rent payments from your tenants that may also continue to increase year after year. While rent may go up, your mortgage payments will remain constant.
Your costs to maintain the property remain virtually unchanged while your rental profits and property values continue to climb!
Tax Advantages of Passive Real Estate Income
Still not convinced that passive income is a smart move for you? Here are the many tax benefits you can take advantage of:
Write off mortgage interest for the amount you borrowed, along with mortgage insurance and property taxes
Claim depreciation on the property — basically claiming an annual loss without losing money
Deduct any travel expenses you incur to collect rent or maintain your property
Deduct the cost of repairs to your investment real estate
Write off any property management costs, advertising or professional fees
Passive income is even taxed more favorably than earned income
Passive income is considered one of the most important wealth-building tools as you receive regular income without expending much effort! By borrowing money to buy Utah real estate for investing, you can further maximize your profits while minimizing the amount of money you pay out of pocket. What could be better than that?