Florida Real Estate: Tax Savings Made Easy
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That’s how real estate investment in Florida has become such a lucrative business.
The word’s out. Spending holidays in Florida is idyllic and more and more tourists from all over the world are enjoying the many benefits of the Sunshine State. Some are also taking advantage of Florida’s cheap real estate prices and are investing in vacation villas such as the highly popular properties in the Gulf of Mexico.
This blissful location is also a firm favorite among friends and family, who will gladly join you on vacation. In order to make property in Florida a good investment, it’s worthwhile to rent it out for the rest of the year. This is how you can make use of your property while still covering all costs.
Another possibility is to invest in income-producing real estate“. Houses in Florida are leased to Americans on a long-term basis for above-average rents by German standards. This investment is much more lucrative and offers more than cost recovery. With good planning, a very good return on investment can be achieved.
Why not invest in Germany?
Some will ask: Why not invest in Germany? It is almost impossible to earn interest in Germany through conventional investments. More and more people in the country are growing concerned about their life insurance and the safety of their money in insurance products.
Another possibility is to invest in real estate. However, real estate prices in Germany are now so high that a decent return unlikely to be achieved. Many are happy about the increased value of their owner-occupied property but it’s of little use to them practically because they must continue to live in it and are prevented from moving on precisely due to the increase in property prices.
What is more, investment in shares is rarely even considered when investing for retirement as fluctuations in the stock market are unhealthy in this context.
Invest in a highly profitable US apartment or invest with a mortgage on German property.
Apartments in Florida are much more profitable than in Germany and they provide you with a rising “rent annuity” month after month. A possible increase in value and tax advantages are further benefits.
An example: A well-built, quality apartment with two bedrooms, two bathrooms, a pool and a fitness center can generate investors a net income of about $6,000 to $10,000 after the running costs, insurance and maintenance and administration costs are all deducted. Your return on capital employed will be more than 10%.
US dollar investments as risk minimization
As a lessor (landlord), you not only profit from a high and, in comparison to Germany, far-above-average returns, you also become more and more independent of the euro. Experts are increasingly expecting the eurozone to suffer from a turbulent future and more and more politicians are calling for stronger inflation. What this means for ordinary citizens nobody knows.
In this context, a solid investment in US dollars with rising returns is particularly important.
Let us create a sample invoice for you to illustrate how you can exploit the opportunities presented by Florida’s real estate market. AVT Service Inc. and its partner companies take care of the entire investment processing and offer ongoing support. This includes the preparation of your US tax returns by a US tax expert who will then take over the necessary declarations in consultation with your German tax advisor.
Of course, every situation is different and there is no universal solution. As a result, the AVT Service approach is comprehensive whilst also being individual and unique. We see ourselves as a full-service partner who is at your side from the identification of your individual goals right up to the selection of the Floridian real estate best suited to your ambitions. What is more, the long-term support we provide you and your investment is an essential part of the process for us.