Comments on: Invest to Financial Freedom - Stocks VS Real Estate, which on to invest? http://www.finandom.com/blog/2006/02/09/invest-to-financial-freedom-stocks-vs-real-estate-which-on-to-invest/ Tips to Achieve Financial Freedom and Retire Wealthy Thu, 18 Mar 2010 05:10:07 +0000 http://wordpress.org/?v=2.7 hourly 1 By: nodoodahs http://www.finandom.com/blog/2006/02/09/invest-to-financial-freedom-stocks-vs-real-estate-which-on-to-invest/comment-page-1/#comment-79 nodoodahs Fri, 24 Feb 2006 03:18:39 +0000 http://www.finandom.com/blog/2006/02/09/invest-to-financial-freedom-stocks-vs-real-estate-which-on-to-invest/#comment-79 Don't forget about the tax advantage. Depreciate 1/27 of the value of your rental real estate every year, do a tax-free Starker exchange to turn your almost-paid-for rentals into even more numerous and more leveraged rentals, as long as you get positive cash flow from the rents, you get appreciation for free as well as a reduction in taxable income. ALSO - you get the capital gains tax exemption for the real estate you've lived in for two of the last five years. Buy two rental houses a year. Live in a fixer-upper that you fix up. Move every two years into another fixer-upper, and put the capital gains into more rentals. When you're ready to retire in a few years, exchange some of your rent houses into one big resort mansion that you use to rent. After a year or so of renting it, convert it into personal use and live there for two years. Then sell it and take advantage of the capital gains tax exemption ... Whew! The question really isn't "real estate vs. stocks" tho', it's really "this house vs. that stock", because each vehicle should be judged on its own merits, but really it's good to have investments of multiple classes. Don’t forget about the tax advantage. Depreciate 1/27 of the value of your rental real estate every year, do a tax-free Starker exchange to turn your almost-paid-for rentals into even more numerous and more leveraged rentals, as long as you get positive cash flow from the rents, you get appreciation for free as well as a reduction in taxable income.

ALSO - you get the capital gains tax exemption for the real estate you’ve lived in for two of the last five years.

Buy two rental houses a year. Live in a fixer-upper that you fix up. Move every two years into another fixer-upper, and put the capital gains into more rentals. When you’re ready to retire in a few years, exchange some of your rent houses into one big resort mansion that you use to rent. After a year or so of renting it, convert it into personal use and live there for two years. Then sell it and take advantage of the capital gains tax exemption …

Whew!

The question really isn’t “real estate vs. stocks” tho’, it’s really “this house vs. that stock”, because each vehicle should be judged on its own merits, but really it’s good to have investments of multiple classes.

]]> By: MyMoneyBlog http://www.finandom.com/blog/2006/02/09/invest-to-financial-freedom-stocks-vs-real-estate-which-on-to-invest/comment-page-1/#comment-67 MyMoneyBlog Mon, 20 Feb 2006 05:33:38 +0000 http://www.finandom.com/blog/2006/02/09/invest-to-financial-freedom-stocks-vs-real-estate-which-on-to-invest/#comment-67 <strong>Carnival of Investing #10...</strong> Welcome to the 10th edition of the Carnival of Investing. Whew, with hosting my Reverse Carnival last week and then putting this one together, I forgot how much time it takes. Thanks to all the submitters, and then also all previous Carnival hosts! Wit... Carnival of Investing #10…

Welcome to the 10th edition of the Carnival of Investing. Whew, with hosting my Reverse Carnival last week and then putting this one together, I forgot how much time it takes. Thanks to all the submitters, and then also all previous Carnival hosts! Wit…

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