Recession had its own disastrous consequences in many countries globally but it proved to be advantageous for some economies. It helped the investors to make their dreams come true by the reduced prices in real estate. Several sectors like tourism and travel, banks and aviation industry have been badly hit by recession. But, during the recovery phase, people in these fields are exploring ways to attract customers and increase their flow of business so that they can overcome the loss.
On the other side, the impact of recession in the real estate field seemed profitable for a certain extent to the builders and end users. Recession has given way for the current boom in the industry. Let us try to understand some of the facts.
When recession was hit, real estate sector faced a diminished demand. Even the higher income group who work in MNCs had undergone a sad phase because of layoffs by the employees to overcome the losses. Salaries of employees were cut down and the prospects for growth in professional field became nil. Ultimately the depression in the economy influenced the purchasing power of common man. And also, because of recession, sellers in real estate are not able to find buyers for their overpriced ventures. To handle the situation, consultants and developers took a strategic approach wherein they aimed for high volume sale and low margins. It gave way to several investors in the industry. This particular strategy gave rise to the concept of reasonable housing in which developers launched low-cost residential properties in all cities. It helped the builders to overcome their losses and encouraged the buyers to own their dream house at affordable prices. In fact, the recession made the prices of property prices stable, by putting a check on the monopoly of the builders who were charging exorbitant prices.
At the time of recession, it looked like the sellers had tough time while the purchasers had the advantage of low prices for residential and commercial properties. But presently sellers also take the advantage as prices are increasing considerably. Investors sell properties for high profit margins which they bought at lower rates during the economic crisis.
Moreover, banks offered lower interest rates during the recession. Several buyers may enjoy these benefits even now as few of the loans are fixed plans.
Recession has helped several buyers to invest in long-term affordable investments in real estate. As the crisis period is over, rental properties have started regaining their prominence. Job market is encouraging and more and more people are moving to cities. House owners have nice time as they again get a consistent flow of money.
We can infer that the recession has helped in balancing and restricting over pricing in real estate industry and gave way for a new beginning in all economies of the world.
Real estate investing professionals look for all possible tax deductions because of the generous profits derived from real estate investing.
For example, real estate investors are concerned whether the sale of their real estate is subject to capital gains taxation or qualifies as ordinary income. Determining this status in the sale of real estate investments affects net profit.
In addition to this consideration, tax deductions are allowed for expenses incurred in the normal operation of any real estate investing transaction. These deductible expenses include the costs of office supplies, professional fees, property repairs, and depreciation.
This article is not a legal or accounting commentary on IRS Code regulations, so you should ask your personal professionals about your qualifications for any specific deductions regarding real estate investing.
Consult with your accountant to determine if the search for new real estate acquisitions away from home would allow you tax deductions for travel, meals, and lodging.
If so, why not combine a vacation with a search for new real estate investing opportunities?
Tax deductible expenses always require that you obtain and keep all receipts relating to the property investment search while on vacation. Pick up newspapers, and mark properties investigated in the classifieds. Collect business cards of realtors contacted. Keep copies of submitted offers.
Many of us real estate investing professionals are workaholics, and a fine line might distinguish the difference between relaxing on vacation and work to find investment properties. But the “working vacation” also might be good therapy to clear your head while simultaneously generating new ideation after keeping your nose close to the grindstone over an extended period of time.
The Central American country of Costa Rica is bordered by water on the east and west, making it a popular retirement destination. Costa Rica divided into six regions, one of which is in the southern part of the country and borders the Pacific Ocean, causing it to be named the South Pacific region. People purchase South Pacific Costa Rica real estate for many reasons, including having a place to spend their work-free golden years.
South Pacific Costa Rica includes the Costa Rican rainforest, which is one of the most biologically diverse environments on Earth. This region is filled with exotic flora and fauna found nowhere else. It is also home to some of the most beautiful tropical beaches on the planet, which also happen to be blissfully remote. People buy land and property there in order to escape the bustling activity of other regions of this country.
Historical reliance on agriculture provides the South Pacific region with a very rural environment. The culture still reflects a “campesino,” or countryman, lifestyle. At the same time, this region is oriented to tourism, offering the La Amistad International Park, shared with Panama, and Chirripo National Park. La Amistad covers 401,000 ha, equally split between the two countries. Chirripo Mountain, the highest peak in Costa Rica, is located in Chirripo National Park.
For those who love nature and a good adventure, the Osa Peninsula is the spot to reside within the South Pacific region. Drake Bay features a village called Agutijas that has several expensive vacation accommodations as well as many picturesque beaches and loads of tropical birds. The small city of Puerto Jimenez is convenient because it has an airport. Residents and visitors can easily access the beach villages of Cabo Matapalo and Carate from there.
Between May and November, four-by-four vehicles are recommended for transportation. Many of the roads are bumpy and unpaved and some area rivers do not feature bridges. Hiking up these rivers just ten minutes from Puerto Jimenez lands adventurers in one of several rainforest towns where a variety of wildlife can be seen.
Costa Rica real estate in the South Pacific region is perfect for retirees who want to maintain active lifestyles. They can explore the local parks, travel off the beaten path, visit amazing beaches, and observe unique wildlife. Properties range in size and price but something attractive and comfortable is usually available for any retirement budget.