Real estate should be viewed like any other investment that you’d make: it’s not 100% risk-free and there are certain underlying variables that you’ll want to consider. Yes, it can be a smart way to go about estate planning in Atlanta, but you’ll want to make sure you’re aware of the following things first.
- Understand your real estate market. All markets are different, and they can vary in how much they go up or down. If you’re not an expert on your local market, make sure you consult with one before you decide what type of real estate investment you want to make as part of your Atlanta estate planning regiment.
- Turnkey properties can add quick returns to your portfolio. These types of properties already generate monthly rental income from proper management. But they can be on the costlier side, investment wise, and tenants are not always assured to pay on time – so proceed with caution.
- A vacation home isn’t part of your estate planning. Sure, they’re nice to visit (when you make it out to them for a few weeks each year). They can also generate some nice seasonal returns, too, but the drawback is that most of the year they remain vacant.
- Look into a real estate investment trusts (REITs). As part of your estate planning, you can invest your money into companies like these that offer diverse portfolios and low investments upfront. However, they are publicly traded companies, so they should only comprise a small portion of your estate planning strategy.
- Rentals are not always the right way to go. Rental properties can quickly turn into a headache, especially if you’re not well-versed in property management. Consider that you’ll also need staffing to help manage them, which will offset your profit margins considerably.
- Fix and flips come with plenty of risk. Sure, you see TV shows about people who do this all the time – but are you really a fixer and a flipper? There’s a whole lot of risk to consider in this situation with minimal reward on the flipside.
- Vacant properties can yield long-term returns. They have a lot of potential to reward you with remuneration in the long run, but they can also end up costing you should something unforeseeable arise. They have a great upside, as far as taxation is considered, but each property has its own set of measured risks to consider.
Estate planning in Atlanta requires a top-to-bottom approach that carefully balances measured risk with reward. Real estate is just one of many different aspects of a properly planned investment strategy. As one of the premier estate planning law firms in Atlanta, we can help ensure that your wealth and assets are safeguarded and managed, so you can focus on enjoying your life while we make sure your hard work is passed on to your heirs in its fullest capacity.
