When you think about real estate investments, you probably think of people investing in the housing market. Residential real estate investments are great, but if you stick to just that, then you’re leaving a ton of money on the table.
The state of the Austin commercial real estate market makes for a powerful investment opportunity. Want to learn why commercial real estate in Austin is the best place to put your money? Read on to find out!
Austin’s Strong Job Market
Austin is the definition of a healthy job market. It’s become so strong that it is ranked as the #2 job market in the country, with nearly 1.2 million jobs.
The job market and population go hand-in-hand. A healthy job market draws more people to the area, and the more people that live in a city, the more jobs are needed to support them. Since Austin’s population and jobs are both growing, there is inevitably going to be a need for more places in which businesses can operate.
Getting in during Austin’s growth phase gives commercial real estate investors the opportunity to make smart investment decisions that’ll yield dividends for years to come.
Tax Benefits for Investors
There’s nothing worse than working hard and having to pay income taxes on the money you’ve earned. Thankfully, that’s not always the case for commercial real estate investors.
The IRS does not consider the income from your commercial real estate investments to be business income. In addition, if you are “materially participating” in the business operations of your investments, then you could potentially deduct losses up to $25,000. Finally, you can also claim depreciation for 39 years on your commercial properties.
Like with residential real estate, as long as you reinvest income from the sale of any property into another property, then you don’t have to worry about paying capital gains taxes on it.
It’s the Silicon Valley of the South
Austin is a dream for many real estate investors for many reasons, but one of the biggest is because it is quickly becoming known as the Silicon Valley of the South.
The reason for this is two-fold. First, the COVID-19 pandemic pushed employees of major Silicon Valley tech companies to make the leap to Austin thanks to their ability to work remotely. More importantly, though, major tech companies themselves are setting up shop in Austin thanks to favorable business laws in Texas.
With companies like Tesla, Facebook, Apple, and Oracle heading to Austin, there’s never been a better time for Austin, TX real estate investments.
Are You Ready to Invest in Austin Commercial Real Estate?
There’s no question about it, Austin, Texas is easily one of the most popular cities for new residents and businesses in the country. Thanks to this robust growth, there’s never been a better time to start investing in the Austin commercial real estate market. The sooner you get started, the more growth potential your real estate investments have so get started now!
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