6 Reasons why 1031-Exchanges are Even Better Right Now
There are six compelling reasons why the current environment might just be the optimal time to embark on an exchange.
- There is little competition. The funds and syndicators can’t compete right now, creating a less crowded playing field.
- The property you want to buy is trading at a discount. Investors can acquire high-potential assets at a fraction of their potential future worth.
- The best time to buy is when interest rates price most out of the market.
- Most 1031s involve a high equity-to-value ratio, so income is less affected by interest rates.
- Exchanging provides interest rate protection, so if rates go up for 5-7 years you are protected, when they go down, you can refinance or use appreciation to get a better property.
- Most property types have growing rents and low vacancy rates.
As a property owner, it is important to know your options. Seizing opportunities that lead to lasting wealth requires a keen understanding of market dynamics and strategic maneuvers. The concept of a 1031 Exchange has emerged as a powerful tool for property owners looking to optimize their investment portfolios and build generational wealth through their assets.
By acknowledging the strategic advantages outlined above and harnessing these factors to their advantage, investors have the opportunity to shape generational wealth through their real estate assets with the 1031 Exchange at the cornerstone of their journey.
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