Ways To Reinvest The Proceeds From The Sale Of Your Omaha House
There are many great ways you can reinvest the proceeds from the sale of your Omaha house. In our latest post, we explore some options to make your new found cash work for you when you sell my house fast in Omaha.
People sell their home for all sorts of reasons. May you need to stop a foreclosure in Omaha, Council Bluffs or Lincoln. You could be facing a probate in Omaha inheriting a house you have no idea what to do with. Sometimes the cash proceeds 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 when you sell your house fast in Omaha, Nebraska.
Real Estate Crowd Funding
A great way to reinvest the profits from selling your house to local home buyer in Omaha, 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.
529 Plan
There is no greater investment than in the future of your children. Being able to start your child off right by providing them education beyond high school is priceless. 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 The money placed in a 529 plan will grow tax-free, and will not be taxed when the money is withdrawn.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 fast in Omaha, 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 in Omaha 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 Omaha, you’ll be able to generate an almost passive income, building on the proceeds you have received.
Home Improvements
If you sell an underperforming rental in Omaha, Lincoln or Council Bluffs, 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.
