Canadians Home Buying Preferences

povincial-home-buying-preferences

A Guide to 1031 Exchanges

In a 1031 Exchange, money from the sale of an investment property can be put towards another “like-kind” property. This means that an investor can exchange a commercial property for another, or a residential rental property for a commercial property. But, be careful! This deal is time-sensitive. You only have forty-five days to identify possible replacement properties, and one hundred and eighty days to close escrow on the actual replacement property. (The IRS is very strict about this timeline.)

And unfortunately, your own personal residence or vacation home cannot be used in the 1031. These properties are not considered to be of “like kind” to any real estate held for investment or business purposes (even if you conducted business from inside your home).

Check out the detailed guide below to sell as smartly as possible! Your heirs just might thank you.

1031Exchange

What Impact Will Increasing Mortgage Rates Have On Prices?

3d diceMany pundits are warning that there will be a drop in real estate values because mortgage rates are beginning to increase. The logic makes sense. However, history shows that increasing rates have not negatively impacted home values in the past.

Four times over the last 30 years mortgage interest rates have dramatically increased. Here is the impact the increases had on home values at the time:

Dates

Mortgage Rate

Home Values

May ‘83 – July ‘84

12.63 – 14.67

+ 6.6%

March – Oct ‘87

9.04 – 11.26

+ 5.2%

Oct ’93 – Dec ‘94

6.83 – 9.2

+ 1.2%

April ’99 -May 2000

6.92 – 8.52

+ 10.9%

Perhaps the impact of increasing rates on future home prices won’t be as dramatic as some are predicting.

Commercial Real Estate 2013: a year in review

Commercial Real Estate

Existing Home Sales Report From NAR [INFOGRAPHIC]

NAR Existing Home Sale Report 3Q 2013

Today’s Prices Compared to Peak [INFOGRAPHIC]

Prices-Since-The-Peak

Defer Capital Gains On Investment Properties: 1031 Exchanges By The Numbers


1031-exchanges-by-the-numbers-infographic-original1031 Exchanges By The Numbers
1031 Exchanges by Cook & Cook

How Does My Home Rate As An Investment

Money.cnn.com put out a cool calculator that shows how your your home’s rate of return compares to a variety of investment instruments. Choose dates and use the sliders to show your return.investment calculator

Buying A Home, See What’s Right For You

Buying-A-Home-See-Whats-Right-For-You

Courtesy of: First Team Real Estate

Click here to view a larger version.