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Investment Tips For 2019

It goes without saying that the stock market beat everyone up in 2018.. However it looks like 2019 is starting off a bit better!

Whew! Investing in real estate also has its ups and downs, some years are better than others. But if you buy right plus understand that it is a long game. You will be OK. Have you heard, you make your money when you buy not when you sell! Huh? Expert always said that people buy rental property for three reasons:

  • Cash Flow!

  • Appreciation

  • Depreciation

1. Cash Flow; An ideal Cash flow when you purchase a property at a reduced price and renting it out for a high double payback on cash return or 12-18% return before expenses. This property usually could be in a declining neighborhood or houses that need some maintenance because perhaps the owner has a limited investment lifespan but the payoff is quick!

2. Appreciation; This is buying a property that is an appreciating neighborhood and location. It will cost you more from pocket but you know why your paying more. Your "profit" is evident in the form of your tenant paying for the property while it appreciates.

3. Depreciation; When either of the residential properties above are rented they can be depreciated on a 27.5 year schedule. This gives you a nice break on your taxes. And it needs to be calculated into your overall strategy. (We suggest that you consult with your professional tax person on this one.) Do you know why your buying investment property? Talk with us at Milano Homes Cyprus about your real estate investments when need property for renting, buying, or selling we would like to help to your success!


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