In this historic market, buying land can be just as challenging as buying a house, and the competition is just as fierce, since existing housing stocks continue to dwindle, and demand continues to build for new construction. Anyone looking to build on a piece of land for sale has to move quickly.
The collapse of the Miami condo building earlier this year shocked everyone, except the owners. They knew the fix would cost them $15,000,000. A swimming pool had been leaking into the garage below, causing structural rebar to rust. Groundwater infiltrated as a result of construction next door as well. Delay or unwillingness to fix the issue killed 98 people. Dozens of lawsuits totaling hundreds of millions of dollars have been filed.
State of the Market
In the last two years, the real estate market has changed fundamentally, affecting all of us. So, it’s worth taking a look at the state of the market at the end of this year, 2021.
Both the residential and commercial sectors saw robust activity this year, carrying momentum from the previous year. And, in both sectors very strong demand dramatically increased the dollar volume of land sales, as buyers’ needs were not fulfilled with current inventory.
Technology is changing our lives with blinding speed, leaving a lot of folks worried or excited about changes in the real estate industry. With the sole aim to pay less, home sellers are embracing discount brokerages all over the country. To those who are experienced in selling their own property, this might be a good option. To those who aren’t, it could be costly or even disastrous. The DIY movement has been expanding exponentially, and it’s understandable that a DIY approach would apply to selling a home too. But, like with anything else, there are pitfalls to navigate.
On the surface, buying a piece of land seems simple enough, especially if the land is high and dry–a level cleared pasture. But, a nice-looking piece of land can also have pitfalls that may not be apparent without investigation. To buy raw land hoping to build either a dream home, a subdivision or a new factory requires a significant investment in order to reveal what’s going on under the surface. It is the reason that 104 hours of study is required to gain an “Accredited Land Consultant” designation (ALC) from the National Association of Realtors, by far the most intensive course of study of and real estate designation.
The 1031 Exchange Cap Debate
In the current political landscape, the age-old tug of war between liberals and conservatives is as tense as ever. The urge to dismantle what is perceived to be a tool solely for the rich is truly misguided. In place for over 100 years, the Internal Revenue Code Section 1031, is a valuable tool to defer capital gains taxes on income real estate, and it benefits landowners directly, and many other people indirectly.