There are many great ways you can reinvest the proceeds from the sale of your Prince William County house. In our latest post, we explore a few options to make your new found cash work for you!
People sell their home for all sorts of reasons. Sometimes the cash is needed right away to pay a debt, and sometimes they find themselves with an unexpected surplus available to use elsewhere. Instead of spending this money on material things that come and go, how about reinvesting your earnings into something that will benefit you down the road?
Read On….
Real Estate Crowd Funding
Although not well known, a great way to reinvest the profits made from your Prince William County area house, is to put the money into a real estate crowdfunding opportunity. You’ll want to research any investment before sinking all your money into it, but investing in a real estate crowdfunding opportunity can be a passive and hands-off investment that can really pay off.
529 Plan
There is no greater investment than that in the future of your children. By contributing to a 529 plan or a designated college fund, you’re not only contributing to your son or daughter’s future, but you are also teaching them a priceless financial lesson. Did you know that the money you use to invest in a 529 plan will grow tax-free, and will not be taxed when the money is withdrawn. Many families utilize these savings plans for their children ahead of time, so they are not blindsided by huge bills when their children finally begin college careers.
A Rental Property
When selling one home, it can be a great idea to reinvest in another. Not only will you avoid capital gains taxes this way, but you will also be able to find a rental property that really performs and generates a substantial profit for you. If one house or investment property isn’t working, maybe it’s time to try something different! When you find the right rental property, you’ll be able to generate an almost passive income, building on the proceeds you have received.
Home Improvements
If you were to sell an underperforming rental, you can use the funds to improve your primary residence. Building equity in your home as well as adding a feature you will personally enjoy is never a bad thing. Whether you want to improve a dated kitchen or repair an old roof, now is the time to get those things done. While you might be faced with capital gains taxes when you choose to spend the money on improvements, you will be able to take a deduction for your home improvement costs. Plus, in order to face capital gains taxes, you would need to generate hundreds of thousands of dollars in profits.
Pay Off Other Debts
Paying money to borrow money doesn’t usually make sense. While carrying a mortgage can actually help in some financial situation, but having a high-interest loan or credit card doesn’t.
Before you go and spend all of your proceeds, don’t forget about the looming tax man. When you reinvest your proceeds into a “like-kind” investment, you will be able to avoid capital gains taxes. Always be aware of your tax consequences when you reinvest the proceeds from the sale of your home. You should always, always, always consult with a financial planner or CPA before making any financial moves.
If You are still in the early stages of completing your Due Dilligence on the sale of your property. Visit us at http://www.aplushomes.life
We are Professional Home Buyers in Prince William County and surrounding areas and I’m positive we can help you in the selling of your property.
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