Real estate has challenges today, but those challenges do not have to stop you from making money in real estate. A ten year veteran real estate broker reveals insider secrets on how to make money in any real estate market.
To keep expenses low you must be aware of your expenses. Your expenses may be:
1. Property taxes
2. Insurance
3. Maintenance
4. Mortgage
Despite the fact that an investor is not eligible for exemptions on income property, there are other ways to decrease the property taxes.
The investor must first understand how property taxes are calculated by the treasurer. To calculate the property taxes, the tax rate is multiplied by the assessed value. The tax rate consists of:
1. Police
2. Fire
3. Schools
4. Library
5. Trash removal
6. Health
The assessed value in most states including Indiana is some variation of the market value for the property.
The investor can lower his or her property taxes his or her property taxes by examining what the property is assessed at. Filing an appeal is recommended when the property is assessed for more than the investor paid for it or when the property is assessed more than the current market will bear. If successful with the appeal, the investor can save a lot of money.
The investor can save money on insurance, as well. The investor can have a higher deductible. The deductible is deducted from the claim with landlord or homeowner's policy whereas with auto insurance the consumer must pay the deductible before the claim is paid.
The investor can also reduce his or her replacement cost to 80% of the value; therefore, the investor will reduce the premium for the insurance. This tactic is only advised if there will be enough available after the deduction to pay the property's mortgage and/or money available to start on replacement of the property.
Still yet another way the investor can save money on insurance is by changing insurance companies. Yes, shopping around is another way to save money on your premium. Use caution here make sure you are getting similar or better coverage than you had before when changing insurance companies for a lower premium.
By setting aside a certain amount from each rental payment, the investor can reduce the cost of major repairs. By setting aside a little of the rent, the investor can be prepare for major maintenance issues.
Another way an investor can save money on maintenance is by having a home warranty. To cover most major components in the investment property, it is recommended to have a home warranty.
Shopping around is always the best way to save money on a mortgage.
Making and saving money in real estate is done by researching and shopping around for the best rates and values.
Serena Brown has been serving her community with her real estate expertise for over 10 years. She owns and operates Taylor-Brown Real Estate.
She has authored several blogs and books on the subject of real estate.
She has degrees in Electronic Engineering Technology and Business Administration.'
You can read more of her writings at http://www.taylorbrownrealestatetalks.com
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