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Cape Cod 1031 Tax Exchange

Real Estate Investing

Despite the current drop in real estate values, real estate has historically proven to be a good investment.
With low interest rates being offered on many savings products (bonds, savings accounts, term investments, etc. )
and the volatility of the stock market, traditional investment vehicles may not be sufficient to save for your long term goals.

Some investors are taking comfort in the diversification offered by real estate investments.
Investing in real estate, however, can be a tricky business, so it is important to discuss all your Real Estate Goals and long term plans with your agent.


As a matter of fact, what can still make a great real estate investment is keyed as much to timing and interest rates as it is to the true operating costs of a property.
When it comes to evaluating investment opportunities, below are advantages of real estate to consider:

    Volatility of the stock market  
    Return on investment through payment of rent
    Long Term Equity through appreciation
    Lower and more managble risk
    Supplemental Income
    Leverage
    Strength of the Rental Market
    Reduced Tax Liability

Vaction Homes and Second Homes

After their primary residence, many investors purchase  vacation homes for enjoyment and even future retirement purposes.
Cape Cod has long been considered a "Blue Chip" Investment - but it is always important to study Location and desirability for resale opportunity.

1031 Tax Deferred Exchange (Insert link)

A 1031 tax deferred exchange allows you to roll-over all of the proceeds received from the sale of an investment
property into the purchase of one or more other like-kind investment properties.

The IRS rules describing what is considered "like kind" are somewhat broad and include land, rental, and business property.
Any can be exchanged for the other.

At closing, proceeds are transferred to a third party - known as a facilitator or qualified intermediary - who holds them until they are used to acquire the new property. A 1031 exchange is often referred to as a Starker exchange.

Exchanges allow you to delay capital gains taxes if all of the exchange funds are used to purchase like-kind investment property.

The deferment is akin to obtaining an interest-free loan on the tax dollars you would have owed for a cash sale. More equity is retained, and this, in turn, helps you move into properties of higher value each time you perform a 1031 exchange.

Success in doing 1031 property exchanges is mostly about doing exactly the right thing at exactly the right time. Consult with your tax and financial advisors about 1031 rules to determine if a 1031 tax-deferred exchange is appropriate for your circumstances and compatible with your investment goals.