The housing market is on the rise in various parts of the U.S. Minnesota is seeing a roll in home sales, encouraging the real estate industry. The Twin Cities’ housing value gains and its overall affordability makes the Minneapolis, Minnesota, real estate market an attractive option.
Let’s find out the top 5 reasons for investing in a 1031 Exchange in Minnesota –
Minnesota’s growing economy is heading to a low jobless rate than the national average. Better employment opportunities are boosting the housing market and resulting in more real estate investments in the area. Investments in the state’s private sector coupled with the high rate of consumer spending are promoting economic activity in MN.
Due to increased consumer demand, job opportunities are at an all-time high. Minnesota is an attractive option for millennial job seekers. As per the U.S. Bureau of Labor Statistics, Minnesota has plenty of opportunities to offer millennials at health care providers and tech firms.
Minnesota’s local economy profits from a wide range of industries, from technology to financial services to retail. In Minneapolis, companies are confident about expansion and look forward to increasing investments in equipment and machinery. Target, 3M, and Cargill are also headquartered in Minneapolis. With the economy growing, employers based in the Twin Cities could hire more.
Minnesota has an excellent housing market for young families looking to move for the region’s spectacular universities and schools. Minnesota features educational institutions like the Carleton College and the University of Minnesota, resulting in increasing demand for rental housing.
As more job seekers are moving to Minnesota, living and housing costs will most likely impact their decision on where to relocate. Minnesota’s rental housing market, even in metropolitan Minneapolis, is more affordable for people with young families and millennials as compared to other metro areas.
In addition to higher demand for rental homes, growing inventory and stable housing prices make the Minnesota real estate market appealing for investors. Minnesota real estate is more cost-effective than other big cities. Real estate investors considering Minnesota are aiming for better returns. These reasons make Minnesota an attractive destination when you are looking at a replacement property for a profitable 1031 Exchange.
Let’s also get a better understanding of the 1031 Exchange.
A 1031 tax-deferred exchange allows investors to reinvest the profits from the trade of investment property in one or more replacement properties without inviting immediate federal (and most state) capital gains taxes on the appreciated value. When the sale and purchase fulfill the 1031 exchange standards, taxes are delayed until the newly procured property is sold. This deferral strategy can be duplicated through any number of exchanges until the tax liability crosses into the individual’s estate upon death.
If you opt for a 1031 Exchange in Minnesota in Minnesota, you should be aware of the basics. IRC Section 1031 enables an accurately structured exchange allowing any investor to trade property and reinvest the profits in a brand-new property and to put off all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.”
1031 Exchange enables your money to churn the maximum profit for you. However, the process of 1031 exchange in Minnesota is extremely complex in nature, and it would be wise to seek guidance from expert professionals. We have extensive experience in handling highly profitable exchanges for our diverse client base.
For consultation and assistance regarding 1031 Exchange Minnesota call – 888-993-2835 or email us at info@1031xchange.com.
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IRC Section 1031, IRC Section 1033, and IRC Section 721 are complex tax codes; therefore, all the investors/clients/consumers are advised to consult their tax and legal professional for details regarding their situation on any kind of investment. There are material risks every investor should know, associated with investing in 1031 Exchange properties, Delaware Statutory Trust (DST) and any other kind of Real Estate Properties. The risks include tenant vacancies; declining market values; potential loss of entire investment principal; that past performance is not a guarantee of future results; that potential cash flow, potential returns, and potential appreciation are not guaranteed in any way; adverse tax consequences and that real estate is typically an illiquid investment. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the Confidential Private Placement Memorandum. Please be aware that this material does not replace the PPM.