By Guinnog at the English language Wikipedia, CC BY-SA 3.0, Link
There are many great ways you can reinvest the proceeds from the sale of your Cherryland, California house. In our latest post, we explore some options to make your new found cash work for you!
People sell their home for all sorts of reasons. Sometimes the cash is needed right away to pay a debt, and sometimes they find themselves with an unexpected surplus available to use elsewhere. Instead of spending this money on material objects and things that come and go, why not reinvest your earnings into something that will benefit you down the road? Below we will discuss some of our favorite ways to reinvest the proceeds from the sale of a Cherryland, California house!
Real Estate Crowd Funding
A great way to reinvest the profits made from your Cherryland, California area house, is to put the money into a real estate crowdfunding opportunity. You’ll want to research any investment before sinking your money into it, but investing in a real estate crowdfunding opportunity can be a passive and hands-off investment that can really pay off.
There is no greater investment than that in the future of your children. By contributing to a 529 plan or a designated college fund, you’re not only contributing to your child’s future, but you are also teaching them a financial lesson. The money placed in a 529 plan will grow tax-free, and will not be taxed when the money is withdrawn. Many families utilize these savings plans for their children ahead of time, so they are not blindsided by huge bills when their children begin college careers.
A Rental Property
When selling one home, it can be a great idea to reinvest in another. Not only will you avoid capital gains taxes this way, but you will also be able to find a rental property that really performs and generates a substantial profit for you. If one home or investment property isn’t working, maybe it’s time to try something different! When you find the right rental property in Cherryland, California, you’ll be able to generate an almost passive income, building on the proceeds you have received.
If you sell an underperforming rental, you can use the funds to improve your primary residence. Building equity in your home as well as adding a feature you will personally enjoy is never a bad thing. Whether you want to improve a dated kitchen or repair an old roof, now is the time to get those things done. While you might be faced with capital gains taxes when you choose to spend the money on improvements, you will be able to take a deduction for your home improvement costs. Plus, in order to face capital gains taxes, you would need to generate hundreds of thousands of dollars in profits.
Pay Off Other Debts
Do you have high-interest debts weighing you down? Now is the time to clear them up once and for all. Paying money to borrow money doesn’t usually make sense. While carrying a mortgage can actually help in some financial situation, but having a high-interest loan or credit card doesn’t.
Before you go and spend all of your proceeds, don’t forget about the looming tax man. When you reinvest your proceeds into a “like-kind” investment, you will be able to avoid capital gains taxes. Always be aware of your tax consequences when you reinvest the proceeds from the sale of your home. You should always consult with your financial planner or CPA before making any financial moves.
Learn about some great ways to reinvest the proceeds from the sale of your Cherryland, California house! Get in touch with us today to learn more! (925) 852-8261
Here are some fun facts about Cherryland, California
The Cherryland Census Designated Place had a population of 15,651 as of July 1, 2018. Cherryland ranks in the upper quartile for Population Density and Diversity Index when compared to the other cities, towns and Census Designated Places (CDPs) in California. See peer rankings below.
The primary coordinate point for Cherryland is located at latitude 37.6794 and longitude -122.1033 in Alameda County. The formal boundaries for the Cherryland Census Designated Place encompass a land area of 1.2 sq. miles and a water area of 0 sq. miles. Alameda County is in the Pacific time zone (GMT -8). The elevation is 66 feet.
The Cherryland Census Designated Place (GNIS ID: 2408020) has a U1 Census Class Code which indicates a census designated place with an official federally recognized name. It also has a Functional Status Code of “S” which identifies a statistical entity.
California is one of 20 states where Census County Divisions (CCDs) are used for statistical tracking of subdivisions within each county. The Cherryland Census Designated Place is located within Hayward CCD of Alameda County.