Whether you are tired of being a Landlord or tired of the tenants don’t wait until the IRS comes knocking to collect the capital gains taxes after the sale of an investment property. The IRS Section 1031, allow for a tax deferral when you exchange investment property for investment property. Sellers get confused about investment for investment. This doesn’t have to be an apartment for an apartment, it can be a commercial building for land held for investment. To find out more please give me a call and I am happy to share more information. Planning for an exchange is the best way to defer the capital gains taxes.
Before placing you home on the market it is important to do these small items to increase the value of your home. Here are a few simple tips to improve the look and feel of your home fast.
1 Low maintenance lawn care: overgrown lawns and bushes will cause your home to stand out- in a bad way. Hire a landscaping service to tidy up, adding plants and trees will also help boost the home’s curb appeal.
2. Deep house cleaning; Make sure your homes says “clean” to potential buyers. Hire a cleaning service for a thorough top to bottom scrubbing.
3. Make you home feel bigger: You can’t change the square footage of your home, but you can make each room in your house feel larger. A sunny room feels more open-replace heavy drapes with vertical blinds or shutters. Clear any clutter, add shelving or storage to help organize.
4. Repair and update: Old wallpaper, light fixtures, popcorn ceilings and broken fixtures could turn buyers away.
While home building has been ramping up the housing supply remains well below long term averages and demand. Both multifamily and single family housing stock remain well below long term averages and are not nearly enought to house millions of millennials now entering the 30’s and starting families. Not to mention the empty nest baby boomers who have increasingly opted for smaller, more conveniently located quarter.
Multifamily construction has been increasing steadily since 2011 and construction in the US are now at a rate not seen in 30 years. Yet, due to the dramatic decline in single family construction since the sub prime mortgage collapse and recession of 2007, new households are forming at a greater level than U.S. housing can support resulting in a strong supply and demand imbalance.