Time for Investors to Bail on Housing Market?
Small-time investors who flocked to the housing market in recent years have done well. But it’s now time to sell, said one of the nation’s top housing economists.
Small-time investors who flocked to the housing market in recent years have done well. But it’s now time to sell, said one of the nation’s top housing economists.
Tom St. Jean has spent almost 18 years focusing on a single section of the tax code: Section 1031. The code allows taxpayers who sell investment and other types of property to defer capital gains by reinvesting in real estate – as long as they follow all the rules.
The Internal Revenue Code contains numerous traps for the unwary foreigner who invests in U.S. real estate. The tax law provisions applicable to nonresident foreign investors are often quite different – and more onerous – than the tax rules applicable to U.S. citizens and foreign residents.
Even though capital markets remain liquid, there continues to be significant interest in multi-housing across the entire United States. And more capital is moving towards the Greater Boston market since the multifamily fundamentals are outpacing other primary markets in the U.S.
Boston luxury home prices actually fell 4.7 percent in the third quarter, to an average of $3.6 million, the sixth-steepest decline in the country. Get ready for more of the same in 2019, thanks to investors trying to offload gilded condominiums.