This seems to be the question on a lot of folks minds lately. The sudden rise in interest rates this year certainly slowed a white hot housing market. Properties that would have had huge amounts of interest have been sitting on the market for weeks even months now. Buying real estate can be intimidating in any market but especially in a shift like we have experienced.
Paying rent for a primary residence is paying someone else's mortgage building equity for the landlord. Embracing this concept is the first step to really building wealth using your own equity.
The primary reason for the interest rate hikes has been the aggressive Fed action to raise rates in order to cool the inflation that we all are seeing. Historically, one of the best hedges to inflation is real estate versus holding on to the cash where inflation reduces your buying power. If you are in this situation and see an opportunity to buy a property that has been on the market for a while, don't wait.
2023 will be another interesting year for sure with no end in sight to the volatility in the markets. If there are tax implications that are concerning to you, please let us put you in touch with professionals that can work a strategy to defer some capital gains on real estate sales using 1031 exchanges or DST's. Walker Luxury and Land is here to guide you and help you get the answers you need to succeed.
