Jim Valentine on real estate
With so little inventory available for buyers and demand continues to be strong, sellers are wondering if now is the time to sell. Real estate is bought and owned for different reasons.
Primary residence real estate is something we cover quite often here. Homes are purchased for their size, location and features to meet the needs of the buyer at the time of purchase. Circumstances change, however, and with the market at or near historic highs, one may be forced to take a close look at how the current home meets the wants and needs of the homeowner. Maybe it’s time to get the right size or just wind up.
Real estate investment is just that, an investment. The benefits range from cash flow to depreciation for tax purposes, but ultimately the potential to achieve good appreciation is a common goal for investors. In a hot market, investors are always looking for their options.
This market segment is currently even more stressed in their decision making due to the uncertainty of rumors from Washington, DC, the elimination of IRS Section 1031 exchange benefits, and the potential for an extreme rate hike. taxation of capital gains. We don’t know what will happen with either of these things, but we do know for sure that they will affect investment property owners if they become a reality.
The volume of investors is high right now as many are looking to move their stocks from our neighboring state to the West to save their taxes and other financial, social and emotional burdens. They are pushing to buy, among other things, rental income housing.
Their target market often captures the segment of the market that already has a lot of landowners using them for rental properties. Values have risen so much that homeowners are considering selling and buyers are willing to pay more than normal as the benefits of owning such a property far outweigh their continued ownership in their current state of residence.
Renters should be aware that their landlord may consider selling into this market where they have always been told they ‘will never sell’.
These are different times with the influence of COVID-19 and the high prices. Parents may unexpectedly need to provide financial assistance to their adult children, forcing them to sell their long-standing rental property. Tenants may have occupied for many, many years, but are now subject to a move notice. This may be to work on the property preparing it to sell at a higher price than in its current condition, or because the buyer is looking to occupy the property himself. Either way, you could be moving soon, although it seems unlikely. Be ready.
Many tenants can buy at today’s incredible loan rates with less payment than what they will pay for rent on their new rental at current market rental rates … even at today’s high selling prices. hui. Even if you think you have bad credit or some other reason not to buy, you might be surprised at what you can accomplish and how easily you can do it. Get with a good real estate agent and a good lender and see what you can do in this market. Your homeownership time may be on you without you doing it, so be prepared.
The times when they have changed… are reflected in the program. You can take action and reap the benefits of your action, or wait and see what happens. As you know, there are those who do, those who watch and those who wonder what happened. Which one are you? Which one do you want to be Whether it be!
Your future is created now. Establish your real estate wants and needs and make a plan to achieve them. You and your family will benefit from your current actions for years to come.
When it comes to choosing professionals to help you with your real estate needs… Experience is priceless! Jim Valentine, RE / MAX Realty affiliates, 775-781-3704. Send an email to [email protected]