Seattle is one of a few major metropolitan areas with continuing escalation in real estate prices, but the pace of the escalation has changed in recent months. Many Sellers are in a wait and see mode. They do not want to reduce their sales price and instead are calling local property managers to place their homes on the rental market. In addition, October through February is a slow time of year in Seattle for rentals. Bottom line, property managers have to work hard to earn their pay!
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Author Archive
Seattle Property Management
Investment Property Owners Well Positioned
The current real estate climate should cause a shift away from home ownership and towards rental properties. Credit is available to fewer people than it was just six months ago, so more families will find themselves in rental housing. In addition, would-be buyers are in a holding pattern waiting to see what happens with the present housing slump
Investment property owners are well positioned in this scenario. While the value of their investment property may take a hit, increasing rents and declining vacancy rates should help offset some of this pain.. (more…)
Tax Implications of Selling a Rental, Part Two
If you sell a rental property that has appreciated you
- pay taxes on your profits, or
- avoid taxes by qualifying for the primary residence exclusion, or
- defer taxes by buying another rental property.
The October 27 blog posting addressed the first two alternatives; now we will review the third option. The IRS refers to this transaction as a 1031 exchange.
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