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That's pretty nuts. But real estate is always a good investment. And the more you invest the more you can make.
Real world example...
In 2003, two brothers buy houses. Brother A in Denver for $200K. Brother B in San Francisco for $500K. 18 years later, Denver house is now worth $750K. San Francisco house is now worth $1.95M.
While both houses increased in value at nearly the exact same rate (both nearly quadrupling) over the exact same period, Brother B's equity is triple that of Brother A.
In May 2021, Marshall home prices were up 6.0% compared to last year, selling for a median price of $191K. On average, homes in Marshall sell after 16 days on the market compared to 15 days last year. There were 16 homes sold in May this year, down from 17 last year.
https://www.redfin.com/city/10383/MN/Mar...ing-market
California is on a different level when it comes to real estate, but home prices everywhere are on an uptick, especially new construction due to the material cost increase. I've seen some homes in the Iowa City area that sold for $385,000 in December and that same layout/house is now listed at $425,000. Hope these rookies take their time evaluating the market and give it a year or so before buying.
Quote: @Hawkvike25 said:
California is on a different level when it comes to real estate, but home prices everywhere are on an uptick, especially new construction due to the material cost increase. I've seen some homes in the Iowa City area that sold for $385,000 in December and that same layout/house is now listed at $425,000. Hope these rookies take their time evaluating the market and give it a year or so before buying.
So your calling for patience and financial prudence???
Right...
Quote: @purplefaithful said:
@ Hawkvike25 said:
California is on a different level when it comes to real estate, but home prices everywhere are on an uptick, especially new construction due to the material cost increase. I've seen some homes in the Iowa City area that sold for $385,000 in December and that same layout/house is now listed at $425,000. Hope these rookies take their time evaluating the market and give it a year or so before buying.
So your calling for patience and financial prudence???
Right...
Well what I am getting at is most markets are inflated right now and are projected to settle back down by the end of the year. I certainly could wrong, but I tend to agree with most experts because mortgage rates are still insanely low and once they jump from 3% to 4% or 4.5% you will see valuations drop as that's typically how the real estate market works
Quote: @Hawkvike25 said:
California is on a different level when it comes to real estate, but home prices everywhere are on an uptick, especially new construction due to the material cost increase. I've seen some homes in the Iowa City area that sold for $385,000 in December and that same layout/house is now listed at $425,000. Hope these rookies take their time evaluating the market and give it a year or so before buying.
Right there is the crux of the stepped up cost basis argument happening right now. The Biden administration wants to do away with the beneficiaries current ability to inherit something at the value as of the date of death.
Its being discussed as "taxing the rich" when in fact anyone who will inherit anything is probably effected by the potential change.
What make it even more complicated with housing is how do you value what was "gain" and what was reinvestment into the property? Did you put on a new deck? Or redo a kitchen? How can one accurately value each transaction that was put into a house that if we're not going to have stepped up basis would certainly need to be deducted from the gains in said real property?
Quote: @AGRforever said:
@ Hawkvike25 said:
California is on a different level when it comes to real estate, but home prices everywhere are on an uptick, especially new construction due to the material cost increase. I've seen some homes in the Iowa City area that sold for $385,000 in December and that same layout/house is now listed at $425,000. Hope these rookies take their time evaluating the market and give it a year or so before buying.
Right there is the crux of the stepped up cost basis argument happening right now. The Biden administration wants to do away with the beneficiaries current ability to inherit something at the value as of the date of death.
Its being discussed as "taxing the rich" when in fact anyone who will inherit anything is probably effected by the potential change.
What make it even more complicated with housing is how do you value what was "gain" and what was reinvestment into the property? Did you put on a new deck? Or redo a kitchen? How can one accurately value each transaction that was put into a house that if we're not going to have stepped up basis would certainly need to be deducted from the gains in said real property?
I'm not sure if the discussion of altering capital gains tax will have much to do with residential real estate. The main thing out there right now is the import tariff of lumber from Canada as that has really hammered builders on new construction. I think we if address that then we can see some relief on pricing
Quote: @Hawkvike25 said:
@ AGRforever said:
@ Hawkvike25 said:
California is on a different level when it comes to real estate, but home prices everywhere are on an uptick, especially new construction due to the material cost increase. I've seen some homes in the Iowa City area that sold for $385,000 in December and that same layout/house is now listed at $425,000. Hope these rookies take their time evaluating the market and give it a year or so before buying.
Right there is the crux of the stepped up cost basis argument happening right now. The Biden administration wants to do away with the beneficiaries current ability to inherit something at the value as of the date of death.
Its being discussed as "taxing the rich" when in fact anyone who will inherit anything is probably effected by the potential change.
What make it even more complicated with housing is how do you value what was "gain" and what was reinvestment into the property? Did you put on a new deck? Or redo a kitchen? How can one accurately value each transaction that was put into a house that if we're not going to have stepped up basis would certainly need to be deducted from the gains in said real property?
I'm not sure if the discussion of altering capital gains tax will have much to do with residential real estate. The main thing out there right now is the import tariff of lumber from Canada as that has really hammered builders on new construction. I think we if address that then we can see some relief on pricing
the lumbers tariffs were over 2 years ago, and actually were slashed about 6 months ago, I think this is more demand driven although I have heard that Canada has slowed lumber exports as retaliation for their pipeline being killed. The real increases in lumber costs have actually come since the tariffs were slashed in December although they were starting to rise last year as covid put cash in peoples pockets and forced them to spend more time at home. now with low interest rates and essentially most of the country a year behind in new home starts... its balls to the walls. But I live close to a major interstate for lumber transport coming out of canada and I can say I dont see nearly as many lumber trucks and trains coming south/east with lumber as I did a few years ago.
Quote: @Hawkvike25 said:
@ AGRforever said:
@ Hawkvike25 said:
California is on a different level when it comes to real estate, but home prices everywhere are on an uptick, especially new construction due to the material cost increase. I've seen some homes in the Iowa City area that sold for $385,000 in December and that same layout/house is now listed at $425,000. Hope these rookies take their time evaluating the market and give it a year or so before buying.
Right there is the crux of the stepped up cost basis argument happening right now. The Biden administration wants to do away with the beneficiaries current ability to inherit something at the value as of the date of death.
Its being discussed as "taxing the rich" when in fact anyone who will inherit anything is probably effected by the potential change.
What make it even more complicated with housing is how do you value what was "gain" and what was reinvestment into the property? Did you put on a new deck? Or redo a kitchen? How can one accurately value each transaction that was put into a house that if we're not going to have stepped up basis would certainly need to be deducted from the gains in said real property?
I'm not sure if the discussion of altering capital gains tax will have much to do with residential real estate. The main thing out there right now is the import tariff of lumber from Canada as that has really hammered builders on new construction. I think we if address that then we can see some relief on pricing
Low house inventory and demand is driving it.
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