Boston Real Estate Law News - Find a MA Real Estate Attorney

How to Take Advantage of the Recovering Real Estate Market

There's been a lot of talk of economic recovery and more specifically the recovery of the housing market. But what does this all mean and where is the Boston housing market headed?

Interestingly, the recovery mirrors the recovery from the real estate depression of the late 1980's and early 1990's, writes The Boston Globe.

So now what does that mean?

It's a mixed bag. There's good news to that comparison. But there's also some less than favorable news.

The good news is that the economy and the housing market are in an upwards trend. That indicates growth and if history is any indicator, that real estate could once again be a good investment, instead of an underwater one.

Now for the not-so-exciting news -- the last real estate depression took over seven years to cure. So again, if history is any indicator, we're looking at many years until real estate becomes a fruitful investment again.

In any event, if you're thinking of making money from real estate, there are many ways to do it, aside from passive investment.

Passive investment is essentially owning a property (or several) and waiting for values to rise.

These days, while prices are climbing, a passive real estate investment won't yield fast money. And what's worse is that loss from the passive investment business won't be deductible on your federal tax return.

Now, how about a more active role in real estate investment? Becoming a landlord is one way to allow your real estate to work for you. And active property management constitutes a tax deductible activity.

Finally, with the housing market picking up, it's a good time to buy a house for your personal residence, as opposed to investment property. You're likely to get good prices without the risk of losing large amounts in equity.

Just don't hope to flip the house in a year for profit, if you've learned anything from the mistakes of the past.

Related Resources: