Real Estate Decisions

How Property Purchases Fit Into a Comprehensive Financial Plan

Purchasing real estate—whether it’s a first home, a second residence, a custom build, or an investment property—requires thoughtful planning and can have a meaningful impact on your overall financial picture. Real estate decisions affect cash flow, taxes, investment allocation, liquidity, and long-term goals, which is why they should never be made in isolation.

As financial planners, we help clients understand how real estate choices integrate into their broader financial plan so decisions support—not strain—their long-term objectives.

First-Time Homebuyers and Young Professionals

For many young professionals, purchasing a first home is one of the most significant financial milestones.

Common questions we help answer include:

• How much should I save for a down payment?

• How will my monthly expenses change once I own a home?

• What price home can I realistically afford?

• Should I choose a fixed or adjustable-rate mortgage?

• How much should I budget for maintenance and repairs?

Homeownership introduces new expenses beyond the mortgage payment, including insurance, property taxes, maintenance, and potential renovations. Planning for these costs in advance helps prevent financial strain after the purchase.

Building a Home

Building a home is often more complex than purchasing an existing property.

Key planning considerations include:

• Construction costs exceeding initial estimates

• Longer and unpredictable timelines

• Financing challenges compared to traditional mortgages

• Temporary housing and carrying costs during construction

Because new builds frequently experience cost overruns, cash-flow planning and contingency reserves are especially important.

Purchasing a Second Home

Many clients purchase a second home while still working or during retirement, often as part of a seasonal “snowbird” lifestyle.

Important considerations include:

• Whether to purchase with cash or use financing

• Changes to annual expenses when carrying two properties

• Ongoing maintenance and management responsibilities

• Rental potential and income expectations

• Mortgage interest and tax deduction rules

For some clients, owning a second home is also part of a state-of-domicile strategy, which requires careful planning to meet residency and tax requirements.

Investment Real Estate

For individuals interested in owning real estate as an investment, the analysis goes beyond the purchase price.

We help clients evaluate:

• Rental income projections and expenses

• Cash-flow sustainability

• Tax treatment of rental income

• Depreciation benefits

• Passive versus active income rules

• Liquidity and diversification considerations

Owning real estate can offer tax advantages, but it also introduces complexity that must be weighed against holding liquid investments.

Selling Investment Real Estate and Tax Planning

Selling investment property can trigger significant tax consequences.

Key considerations include:

• Short-term vs. long-term capital gains

• Depreciation recapture

• State and federal tax exposure

• 1031 exchange opportunities to defer taxes

We model how the sale of real estate impacts cash flow, taxes, and the client’s overall financial and estate plan before decisions are made.

Contact Us . . . .

All of our services start with a complimentary consult. No high pressure sales tactics. We are financial planners, not salesmen.

About Our Firm:  Greenbush Financial Group is an independent registered investment advisory firm based in Albany, New York, that provides four main services to clients: fee-based financial planning services, investment management, employer-sponsored retirement plans, and retirement planning services.  The firm serves clients locally in the Albany region and virtually across the United States.

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