We Buy Houses In Kensington California. There are many great ways you can reinvest the proceeds from the sale of your Kensington house. As professional Kensington home buyers, we can help you explore some options to do your new-found cash work for you here in our latest post!
5 Ways To Reinvest The Proceeds From The Sale Of Your Kensington CA House
People sell their homes 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 Kensington house!
1. Real Estate Crowd Funding In Kensington
A great way to reinvest the profits made from your Kensington 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 pay off.
2. Kensington CA 529 Plan
There is no more excellent 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 The money placed in a 529 plan will grow tax-free and taxed when the money is withdrawn.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.
3. A Rental Property In California
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 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 Kensington, you’ll be able to generate an almost passive income, building on the proceeds you have received.
4. Home Improvements In Kensington
If you sell an underperforming rental, you can use the funds to improve your primary residence. Building equity in your home and adding a feature you will personally enjoy is never a bad thing. Whether you want to enhance 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, to face capital gains taxes, you would need to generate hundreds of thousands of dollars in profits.
5. Pay Off Other Debts In Kensington CA
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 help in some financial situation, 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 profits 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.
Sell My House In Kensington CA
If those ways have been helpful to you, then we urge you to sell your property directly to “John Buys Bay Area Houses”. There isn’t any marketing to worry about, nor will you have to do anything to prepare the property for a sale. Avoid the hassle and no need to hire an agent. We are local homebuyers in California and we offer cash for houses in Kensington in any situation. We will make the process simple so you can quickly sell your house in CA and move on.
