by Furnishly | Apr 13, 2022 | Design Inspiration, Style
If the idea of being a real estate investor conjures up images of receiving a frantic phone call at 2 a.m. from a tenant about an overflowing toilet, think again. While owning a property — including your own home — is certainly part of real estate investing, it is not the only way. In fact, there are real estate investing options that don’t involve home maintenance or even paying a monthly mortgage. See if any of these three options will make you rest easier at night.
The metaverse is not just the creation of sci-fi books and movies like “Ready Player One.” This 3D virtual world is here and we’re already living in it — or at least our avatars are. What’s more? You can invest in land there, and you can build whatever you’d like because here we’re dealing with screen pixels, not square footage.
“The metaverse could very well become the first step on the property [ownership] ladder,” says Kristi Waterworth, who writes about metaverse real estate investing for finance site The Motley Fool. That’s good news for those who currently find themselves priced out of the real real estate world. Of course, land in the form of a non-fungible token (NFT) might not exactly warm your heart, but there are ways of renting said land to make real money in the form of cryptocurrency, another investment opportunity. Decentraland and The Sandbox are two of the more popular virtual gaming platforms in which to do this.
The metaverse is all very speculative stuff, and you’ll have to have some risk tolerance to get in on it — though to be fair, any type of investing involves risk. Still, the global bank Citi has projected that the metaverse economy could be worth $13 trillion by 2030. The takeaway? Buy now and plan to hold onto those pixels for a while.
Waterworth does have one note of caution: It’s tempting to get in on a brand-new metaverse platform with the hopes of being the first, but it might not pay off.
“Part of what makes the metaverse worth something is the community,” Waterworth says. “And if you go into a new metaverse platform that’s empty, you’re taking a gamble that anyone else is going to be interested in it.”
If trading in crypto on the stock exchange is too much of a wild ride for your wallet, you can invest in the real world through real estate investment trusts, or REITs. REITs are companies that own real estate across various sectors, including retail, office, hotel, industrial, health care, data centers, self-storage, and more.
REITs are a solid bet for many investment portfolios in that they are required by law to pay back 90 percent of taxable income to investors in the form of dividends. Of course, the pandemic has not been kind to retail and office REITs, but there are other REIT sectors that offer more stability for your investment. Like with other real estate investing strategies, plan to buy and hold REITs for at least five years or more.
Explore crowdfunding platforms.
If you’ve ever donated some money to an online fundraising campaign, whether it’s to help launch a new product or help out someone in need, you’ve gotten a taste of crowdfunding. It’s a rather social way of getting people and their wallets together in support of a common goal, and real estate investing has taken to it in a big way.
Platforms like CrowdStreet and Fundrise make investing in commercial and industrial real estate accessible to people who don’t have the benefit of millions of dollars in spare cash. With either one, you can set up an online account, learn about investment opportunities throughout the platform’s network, and make an investment that makes sense for your financial situation and risk tolerance level. (Note that there are fees based on the level of your investment.)
Is it possible to get in on any of these opportunities with smaller investments? Yes. Are you going to make millions with small investments? No. Can you build and grow a portfolio that will see some nice returns over time? Quite possibly. Real estate investing is very much a buy-and-hold strategy, so if you don’t mind having your money tied up for the next five years or more, it could be a good option for your investment portfolio.
All financial investments carry some level of risk. The information presented here is for educational purposes and should not be taken as financial advice. Connect with a financial advisor to discuss your own risk tolerance.
Barbara Bellesi Zito
Contributor
Barbara Bellesi Zito is a freelance lifestyle writer from Staten Island, NY, covering all things real estate and home improvement. When she’s not watching house flipping shows or dreaming out about buying a vacation home, she writes fiction. Barbara’s debut novel is due out in early 2022.
by Furnishly | Apr 7, 2022 | Design Inspiration, Style
Kara Nesvig
Contributor
Kara Nesvig grew up on a sugar beet farm in rural North Dakota and did her first professional interview with Steven Tyler at age 14. She has written for publications including Teen Vogue, Allure and Wit & Delight. She lives in an adorable 1920s house in St. Paul with her husband, their Cavalier King Charles Spaniel Dandelion and many, many pairs of shoes. Kara is a voracious reader, Britney Spears superfan and copywriter — in that order.
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by Furnishly | Apr 1, 2022 | Design Inspiration, Style
Buying a house is a big investment. It can come with lots of hidden expenses, too, like repairs you didn’t know you’d have to make, higher utility costs, and even homeowner or neighborhood association fees. To soften the blow, you can save some money on your taxes after you buy a home. If you bought a house in the last year, make sure you’re aware of these opportunities for tax credits and deductions.
Deduct Mortgage Interest and Property Tax
The largest tax benefit you’ll get when you purchase a home is the ability to deduct mortgage interest and property tax from your taxable income. It’s pretty simple — your lender will send you a 1098 form with mortgage interest information to use with your taxes for the year. If you paid your property taxes into your lender’s escrow account, that will also be on the form. If you pay directly to the county you’re in, keep records of your payments to use come tax time.
Marissa Sweet, a property tax advisor at Direct Tax Loan, notes that there are two important things to remember:
“First, if an owner uses an escrow account, the owner cannot deduct tax payments made into this account,” she says. “Property taxes are only deductible once the payment is made by the lender to the county. Second, depending on how taxes are paid in the specific county [whether they’re paid in advance or in arrears], during the year that the property was purchased, the buyer may have reimbursed the seller for taxes paid in advance.”
If that’s the case, just look at the final settlement statement for your home and check for a reimbursement to the seller. If there’s one listed, bring that statement with you to your accountant.
Deduct Mortgage Insurance Premiums
If you put less than 20 percent down on your home purchase, you’ll be required to get mortgage insurance charged through your lender. Depending on your state and your borrower, it might not be that expensive — anything from a few bucks a month to a couple hundred. But there’s a perk to it, says Marina Vaamonde, real estate investor and founder of HouseCashin.
“Depending on the current tax law and the adjusted gross income, a homeowner may be able to deduct some of this from their tax liability,” she says.
Remember Renewable Energy Tax Perks
You can’t get tax credits anymore for building or owning an energy efficient home — that perk ended at the close of 2021 — but you can get tax credits if your home uses renewable energy products. It doesn’t matter if it’s an existing home or new construction, either. You can get up to a 26 percent tax credit if your home has any of the following: geothermal heat pumps, small wind turbines, solar energy systems, fuel cells, and biomass fuel stoves.
Jennifer Billock
Contributor
Jennifer Billock is an award-winning writer, bestselling author, and editor. She is currently dreaming of an around-the-world trip with her Boston terrier.
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by Furnishly | Mar 29, 2022 | Design Inspiration, Style
Heather Bien
Contributor
Heather Bien is a Washington, D.C.-based freelance writer whose work has appeared on MyDomaine, The Knot, Martha Stewart Weddings, HelloGiggles, and more. You’ll often find her making pitstops for roadside antique shops, drooling over original hardwood floors, or perfecting her latte recipe.
by Furnishly | Mar 28, 2022 | Design Inspiration, Style
A number of years ago, I left a career as an oral and maxillofacial surgeon to pursue writing. I had sought out the medical field because as the first-born child of an immigrant family, I had to meet the expectation of higher education and a well-paying job. Yet, after a few years, I found myself in tears whenever I’d leave work. I thought that maybe I just needed a vacation. So, I chose a wellness resort that gave me some time to reflect.
One day, I was walking around the property’s labyrinth when I asked myself, “What do you want?” I tried to ignore the question, but it came up again. I eventually realized that I didn’t want to be an oral surgeon anymore — I wanted to write and tell stories. But a change that big was terrifying. When I got back home, the only step I took was to cut back on expenses and save more money in preparation for a potential career change. But my body began to revolt, imposing severe gastritis attacks that sent me to the emergency room. After a few of those, I decided it really was time to give my notice. While my salary was instrumental in helping me build my savings and feel somewhat safe with the transition, I still learned a lot from switching to a lower-paying career.
The shift dictated a change in lifestyle and taught me several lessons along the way, some of which required looking in the mirror. I didn’t always like what I saw, but I loved what I learned. Here are nine nuggets I picked up.
How little I could relate to others.
As a surgeon, I could go anywhere and buy anything I wanted. Posh gym and a personal trainer, check. Overseas trips, check. I remember recommending those activities to others or talking about my travels to people as if everyone had the same salary. It took leaving the field to develop an understanding of and compassion for people with different income levels.
How many unnecessary purchases I made.
On my days off, I made a habit of visiting my favorite shops and purchasing clothes, shoes, jewelry, and body products. Even a year after I stopped randomly shopping, I would find clothes with tags still attached in my closet. It was a waste of money and a disservice to Mother Earth, considering the damage the fashion industry does to the environment. I realized these extra purchases were a way to handle negative feelings, the sadness of my divorce, the stress of my work, and maybe a sense of loneliness.
I don’t need much to live a happy life.
Once I changed my spending habits and began focusing on needs rather than wants, I noticed how little I had to own in order to live happily. My 500-square-foot studio became my sanctuary. I continued my favorite activities of writing, drawing, and baking. A small living space required less time and effort to maintain. Being mindful of space meant choosing fewer, but good-quality items.
It’s important to live within my means.
We live in a consumerist society that constantly pressures and manipulates everyone to want and buy things we don’t necessarily need. I learned that I may need a car, but I don’t need a BMW. I need a place to live, but it doesn’t have to be a financial burden. I’m mindful of what I can afford. And if friends judge me negatively for doing so, I reevaluate those friendships.
Enjoying life doesn’t cost a lot.
For me, there is a way to live on a budget and still enjoy life. I take advantage of the museums’ discount or free days. Instead of buying books, I visit the local library, which also offers passes to cultural events (museums, the ballet, etc.) I buy in-season produce — it tastes better and costs less — and I check out free community classes at my local yoga studio.
Experience trumps stuff every time.
No matter how much I love an object, its novelty usually wears off in a day, a week, or a month. What stays with me forever is the memory of a trip, a lovely meal, or a skill I learned in a class.
When I’m down, I remember what I have achieved so far. Drawing upon my successes lets me know I can handle whatever comes next. Recognizing my accomplishments gives me the courage and strength to move forward.
Gratitude brings abundance.
There’s a saying that goes: “When you love what you have, you have everything you need.” I can’t agree more. There’s levity and joy in appreciating what I have and realizing that it’s enough. When I do, I feel abundant.
My choice, my consequence.
Having clarity in my decisions and autonomy makes me feel more confident. Once I chose the career path that was best for my life, I was willing to accept the consequences, even if they were slightly uncomfortable. I pulled myself up by my bootstraps and built anew.