A recent article in FLORIDA TODAY highlighted the importance of happiness and its contagious nature. I believe the same is true with our attitude in this economy. Isn't it just as easy to believe in a positive future instead of a negative past or present?
This contagious epidemic of optimism could spread to the retail community, the new employees relocating to this area, the community leaders, our snow birds and each and every person living or visiting in Brevard County.
The facts are encouraging.
Brazilian jet maker Embraer is set to take off with the promise of 200 new positions, threads of possibilities for enhanced scientific research in space exploration are appearing daily, giving hope for the continued employment at Kennedy Space Center.
The optimism is perpetuated as the activity in real estate continues to emphasize fewer listings coming on the market and the volume of sales continuing to increase. Long-time investors are seeking more in the way of capitalizing on this market: that is "sell low, buy low." The long-time investor who has real estate holdings that have been depreciated for tax benefits are selling through what is called the "1031 exchange" method. The 1031 or Starker Exchange provides for buying replacement properties to enhance the tax-deferred purchase.
The investor should verify with their accountant that the depreciation process can now begin again. The wise investor meets with a good accountant and creates a plan to enhance wealth through government sanctioned write-offs. A 1031 allows a seller of like/kind investment property to defer taxes on the gain after the sale, if very specific rules are followed. One can then, purchase similar properties while an intermediary holds the funds from the first sale prior to the reinvestment in the next purchase.
An experienced Realtor can assist and direct the investor to the proper closing agent/attorney for procedural requirements to assure the investor of the 1031 exchange as allowed by the government.
New investors entering this market should be conservative in their investment purchases. New investors should be well advised as to the pros and cons of their investment. The tax benefits are great for those who can afford this purchase. Let the optimism continue as we all look at the positive sides of this very different economy. Smart people look at the benefits.
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