1031 Exchange Washington
Increased Employment Growth In Washington
The State of Washington has been the center of positive job prospects since the inception of the year, and all industries are witnessing some employment growth. According to statistics from the Economic and Revenue Forecast Council, Washington ranked 5th in overall growth in the U.S
King County, where Seattle is situated, witnessed a major high in all investments, and most interestingly in the tech industry. An 8.9 percent rise in jobs last year and a projected total of 5 percent increase for 2019 is a great indicator of a robust job market and an expanding rental market.
It seems like 1031 Exchanges are filled with deadlines and qualifying requirements, so the work you do with your qualified intermediary needs to start as soon as possible. And Brokers, if you haven’t contacted a trusted intermediary and a tax advisor yet, it’s time to start finding them.
Your preferred exchange specialist will act as a resource, advisor, and professional who will work to deliver a 100% tax deferral on capital gains for your clients.
How to identify 1031 exchange investors in Seattle
Clients may be trying to
- Diversify investment properties: With Seattle seeing higher appreciation, clients may wish to sell one property here, and buy several in different growing areas in the U.S.
- Consolidate investment properties: This can be done by exchanging two duplexes for a retail strip centre.
- Generate more cash flow/income: For example, a vacant parcel of land that offers no cash flow or depreciation benefits can now be exchanged for a commercial building that does.
- Continue to build wealth by leveraging cash: A 1031 Tax-Deferred Exchange can provide an investor leverage to acquire a more lucrative investment property. By using the money they would have paid as taxes to the IRS, they can increase their down payment and obtain a more expensive replacement property.
- Freedom from complicated management: This is the most typical reason for investors to do a 1031 exchange. An investor can significantly increase profits and decrease time and effort in management by exchanging out of a high maintenance rental property into an apartment building, TIC, DST or an NNN leased investment.
Timing is still everything
The first thing to remember is to get a Qualified Intermediary involved in the process before you close on selling a property. Ideally, even sooner. The only challenge in doing a 1031 exchange in Seattle is the low amount of inventory available. This circumstance paired with a 45-day deadline, in which a specific replacement property must be identified.
Additionally, there’s another deadline: the exchange must be done within 180 days of transferring the relinquished property.
Do ask your qualified intermediary about the following exchange options:
- Reverse exchanges
- Improvement exchanges
As the Seattle housing market continues to grow in 2019, buyers now have a better prospect of doing a 1031 exchange in Seattle for investment. With prices plummeting from the market’s peak point and inventory of properties on the market going up, real estate investors are advised to make a move on this city.
Prices Are Dropping
The rapid rise in prices of Seattle houses for sale just two to three years ago left the city a hot seller’s market. However, according to recent statistics, the median home value in the Seattle housing market has dropped 4.5 percent since last year and is currently $717,800. Market values are expected to drop another 3.8 percent for the coming year, and with this drop in value comes a drop in property prices.
Golden prospect for investors doing a 1031 Exchange in Washington
Though a 1031 exchange offers great benefits to every investor, it entirely depends on the investor’s decision and how they make the most out of their exchange. Other things like property’s location, living condition, job availability, crime rate, etc. play a significant role in shaping up the future of any real estate investment. As a 1031 investor, you would certainly want your replacement property to be in a place that has a low crime rate and excellent opportunities for job-seekers. Michigan is one such place. Plus, the resources this state provides. It’s one of the ideal locations to find a replacement property for your 1031 exchange. For further queries, do check our FAQ section to get answers to all your 1031 exchange related questions.
To know more about 1031 Exchange in Michigan real estate market, you can speak to one of our advisors on 888-993-2835 or email us info@1031Xchange.com.