So, now I have consulted with several individuals that have expertise ranging from real estate agents to individual investors. The investors, who do this kind of thing for a living, were all saying pretty much the same thing. “If you buy now, make sure you get rid of it quickly.” But, I think, in the commercial market, buy and hold is a much better play.
And here’s why…
Stock markets are depressed now. Not a true recession, but they are down. Consumer confidence is low while business productivity is throught the roof! Check it out – it is just a matter of time for “oil and housing” to move off of the front page of our evening newspapers. Once that happens, businesses will begin to spend more on things like buildings, both retail and office space. This will only occur when consumers start spending again.
What will get people to start spending again? Dunno. But, if there is some great breakthrough in the fuel efficiency of our cars, or peace breaks out in Iraq, you can bet the “squeeze at the pump” will go away and that money will flow back into things like clothes, electronic gadgets and household items.
Hey! Businesses get more sales and they expand their operations. Real Estate values go up. And I am a happy camper.
Now, we will research this thing called a “1031 Exchange”.
Stay tuned.
-The Flipster
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While a 1031 exchange is a powerful tool to assist in wealth preservation, it is not always suitable as people age. According to the experts, 15 – 20 % of all exchanges fail and this represents ~ $30 Billion dollars in busted exchanges.
I thought you and your readers might like to know there is another way to defer your capital gains taxes (and depreciation recapture tax) without buying replacement property.
Check out http://www.propertywantads.com and post what you’re looking for.