My goal as a real estate agent is to help others, that includes providing insight into the current market and overall economy.
After three years of a real estate bubble, caused by low interest rates, it appears that the real estate market is currently on pause. Many homeowners are unwilling to upgrade or downsize by trading a low interest rate with one that is higher, causing a decrease in available inventory of active listings than actual units sold. Buyers are unwilling to pay high prices at higher interest rates. However, it might be better to enter the market today instead of paying a higher price in the future.
Capital gains might be a concern when considering selling property. The good news is that the impact of tax liability on capital gains might be minimized through available tax deferral and asset protection trust programs on income property.
Also, some strategies might help you to keep your cash, by deferring or even eliminating taxes on capital gains. Among these strategies is an asset protection trust, which has the potential to save you a lot of money on your taxes.
Some Silicon Valley’s homeowners might be retiring with 42%equity in their homes, a percentage that has accelerated over the past three years. For owners of income property, the 1031 Exchange program defers depreciation of capital gains. In 2024, the Exchange percentage rate might drop by 2%.
The real estate market differs from the economy. It is a market driven by events such work, relocation, and marriage, or divorce. Historical average real estate mortgage rates of 7% had been the regular cost of borrowing money. However, in recent years, low mortgage interest rates allowed homeowners to sell high and buy low. Last month mortgage rates were as high as 8% and came down slightly to 7.42%.
They are predicted to be around 6% by spring of 2024. With lower interest rates, however, selling prices might rise even more. Therefore, in actuality, home prices might be more relevant than interest rates which might go up and down. In other words, interest rates going down might cause buyers to pay more for the price of the purchase of the same home.
Some of the solutions:
· The journey starts with our fast-track KW Advisors group. My office finance department can help you shop for a mortgage. If we can’t get it done, nobody can. Our technology and business process saves you time and money when shopping for the best mortgage.
· Understanding financial options to build wealth through real estate strategies and how to save money on taxes.
· 1031 Exchange and strategies to defer or eliminate taxes for decades when you close on the property.· Capital gains might be the reason why you are not selling your property, and you might not want to purchase another property. I can refer you to a qualified intermediary to learn about alternative tools for tax deferral.
If you want to reduce your tax bill, I might have a solution that will allow you to invest or downgrade and still save money on taxes. I can refer you to a qualified intermediary to significantly reduce your tax bill. This information-packed presentation will show you how to “do well” by “doing good!”
Carlos Ezquerro, Realtor
DRE: #01238493
KW Bay Area Estates
[email protected]
(408) 898-0336.
I can keep you in the game, and keep you going by knowing the rules of the game. I do not give legal or tax advice.
The best way to get guidance on your specific legal issues to contact an attorney or tax professional.