Thinking about getting started on a real estate project after the holidays?
You might not want to wait until next year to buy a property. Here’s why.
Better Now than Later
As far as trends go, the real estate market has been doing surprisingly well amidst the pandemic. The severe slow-down in the market that many experts predicted turned out to be short-lived. This means that those in the real estate industry can expect this upward trend to continue, even if quarantine lasts much longer than initially anticipated.
But why does that mean you should buy real estate before the year ends?
There are two main reasons that we see: housing supply and taxes.
1. The housing supply is still lagging behind demand.
Houses are not being built as quickly as people want to buy them. This continues to drive up housing prices with no end in the near future in sight. Buying a home sooner rather than later is advantageous on both ends of the fix-n-flip deal.
Getting in earlier will help keep your purchase costs lower and capitalize on the market trend. Buying a home to rehab or fix-n-flip soon will lock in a better purchase price for you.
Then, when it comes time to sell, the market will have most likely continued to climb during the renovation process. This provides not only dividends on the value you added to the home but capitalizes on the market trend as well.
2. A new administration may review tax guidelines pertaining to real estate.
The unavoidable: death and taxes. Thankfully, we’ll get to put off death for another day, but that may not be the case for taxes anymore.
Besides some proposed tax plans to eliminate or reduce tax rollovers for capital gains, the continued growth of the real estate market is likely to garner attention from taxing entities on high. This attention will most likely manifest in additional taxes or reduction of tax incentives or closing tax loopholes.
For the real estate investor, that means making a home purchase in 2020 could help avoid unwanted tax burdens instated next year. For those that like to move fast, this can be an even more favorable tactic. Quickly purchase a home to renovate or rehab, make a plan, and purchase all the materials you can before the end of the year and lock in those tax advantages.
We may be speculating a bit but waiting until next year to purchase a home brings much uncertainty into the picture. And uncertainty is something we try to avoid as much as possible.
Want to move fast on a real estate property?
Park Place Finance can close on a hard money loan in as little as five days. There isn’t much time left in the year, so if you’re trying to maximize your dollars against time, having a hard money lending team like Park Place Finance is crucial.
Are you ready to make a move on your next real estate project? Contact us at Park Place Finance today to get started. Buy real estate before the year ends and start next year on the right foot!