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Real Estate Speculators grab headlines, but
long-term
Pigeon Forge TN Real Estate investors remain market drivers.
The lion’s share of property buyers today pick and choose properties
carefully, holds on to them for the long term, and typically only sells them
to help pay for retirement, say brokers and associates.
Investment, alive and well
It’s difficult to pinpoint the extent of aggressive, short-term investing in
residential markets, but there’s no doubt investment of all kinds is growing
and playing a role in continuing strong sales.
About one-quarter of the new and existing single-family homes,
townhouses, and condos are purchased for investment. “We’ve seen a shift over the last few
years, with a growing number of second-home buyers purchasing primarily for
investment,” says David Lereah, NAR chief economist. The number of
vacation-home buyers is growing, too.
Demographics drive sales
Continuing strong demand for housing remains the main driver behind strong
price appreciation despite the presence of speculators in some markets. That
demand is fueled by growing household formation and immigration trends, so
it’s not expected to dry up any time soon, say practitioners.
Quick selling means tax consequences
Owners who sell an investment property (one that’s not owner-occupied)
before they’ve held it for one year are required to treat the sale as a
short-term capital gain and pay tax at ordinary income tax rates. The rate
can go as high as 35 percent depending on the person’s tax bracket. That
means your clients could lose much of their gains. If they hold the property
for a year or more before selling, sale proceeds are considered long-term
capital gains and are taxed at a 15 percent rate.
One way your clients can defer any tax obligation on the sale of investment
property that’s not owner-occupied is to plow their proceeds into property
equivalent in value under Section 1031 of the Tax Code. Owners have up to 45
days to identify a comparable property and 180 days to conclude the
transfer.
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The Pigeon
Forge
TN continues to see tourism rise and starts of new homes
and cabins soar.
More than 13 million tourists visit the Smoky Mountains in
Tennessee annually, which has made this one of the largest hot
spots in the nation for
Pigeon Forge real estate investments. Sevierville,
Gatlinburg, Pigeon Forge and Seymour are expanding with record
numbers of new homes, condos, resorts and cabins.
"Pigeon
Forge TN investment properties have
certainly changed," says Turby Treadway, one of the top real
estate agents in the Pigeon Forge TN. "Over the past 12 months,
I have seen a major change in pre-construction opportunities."
"Log cabin investments have been the leading
Pigeon Forge real estate cabins product for many years," he
added. "This has returned investors a phenomenal return on their
dollars spent, not just in real estate appreciation, but in
overnight rentals as well."
The new trend today is going toward
Pigeon Forge TN pre-construction condos and resorts. Several new projects
with pre-construction discounts will be released soon in the
Pigeon Forge area.
"The real estate market in the Smoky Mountains is better than I
have ever seen," stated Treadway. "With the new properties being
released now and in the upcoming months, it is a perfect time
for investors to take advantage of pre-construction discounts of
up to $40,000 in some cases."
Emerald Creek Resort, an upscale development located in
Sevierville, Tennessee have recently all been sold out. This resort offers the
finest amenities a property has to offer and is
conveniently located just 2/10 miles off the parkway going
toward Pigeon Forge TN from Sevierville..
If you are looking for property in the Pigeon Forge we can assist you. For your
investment property, buying or selling a condo, log cabin or
garden home, call Turby Treadway, visit us on the web at
http://www.smoky-mountains-real-estate.com.
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