Which Florida Cities Are Hot Right Now?

It has been a good year for Florida. With northern buyers drawn to Florida by the 2018 tax plan, the state is booming at the moment. But which cities in the Sunshine State are especially growing right now?

1.   Sarasota

Home to the fastest growing luxury housing market in the United States. Prices in Sarasota’s luxury housing market grew by 21% in June when compared to one year ago. Half of all luxury houses in the city sold within 157 days.

2.   Naples

Home sales in the city of Naples rose 11 percent year over year in January. A month in which national sales dropped over four percent. Fun fact: the Naples zip code of 34102 is ranked as one of the fifteenth richest zip codes in the United States.

3.   Fort Lauderdale

According to Forbes, Fort Lauderdale has become a city of choice for savvy investors of commercial and residential real estate. The city is currently in the midst of a building boom. Some 7,000 residential units were under construction or approved in 2017.

Something Exciting is Happening in Chicago’s Real Estate Market

Chicago’s luxury housing market seems to be doing quite well for itself these days. Riding off the longest bull market in U.S. history, a multi-million dollar property is being sold once every five days in the Chicago metro area.

Not all tiers of Chicago’s housing markets are experiencing the same boom that the top tier of the market is. But this has not had an effect on the luxury market. In the month of August alone over 51 houses and condos in the windy city sold for at least $4 Million. More than were sold the previous two years. 6 sales for homes over $10 million have taken place this year alone.

What Are the 2 Timelines in a 1031 Exchange?

There is a very specific timeline that the IRS lays out for your exchange calendar that must be followed to the letter. From the day that you close the sale of your investment property, it is important to know that there are two periods for you to respect: the identification period and the exchange period.

1.   45-Day Identification Period

The 45-day identification period is the time in which an exchanger must either identify potential replacement properties or take title to their new property and finish the process. However, at the minimum, one must have a list that shows the properties that are being considered for purchase. On day 46, the list is finalized and cannot be changed. Whatever is on that list is there for the remainder of the exchange period. Make every effort not only to get into contract during the 45-day period but also to close and purchase a replacement property or properties.

2.   180-Day Exchange Period

Concurrently, with the 45-day period is the total exchange period of 180 days. From the day that you close the sale of your property, you have 180 days to complete the process. The purchase has to be one or more of the properties that are on your 45-day list. If you start your exchange in such a way that you’re going to run up against your tax return deadline prior to the 180 days, file an extension and you’ll still get the full 180 days for your exchange period.

While these strict timelines might seem intimidating, there is no need to worry. There is no penalty for starting and not finishing a 1031 exchange. If you start a 1031 exchange but do not complete it because of a 45-day issue, or any other reason, simply do not report the exchange on the next tax return. Let the time periods motivate, rather than intimidate you.

Luxury Housing Market Stays Strong as Trump Tariffs Hit Home Builders

Aluminum, steel, and lumber are all key ingredients to constructing a house. And these ingredients are seeing a soaring price increase. The price of housing materials shot through the roof this summer after tariffs imposed by the White House took effect. Experts are preparing for the long road ahead as the tariffs are likely to worsen.

While luxury housing is not above the fray, construction material is a smaller percentage of the overall cost of a luxury property. Luxury home buyers are also willing to shell out a little more cash to acquire the home they want. Demand for luxury homes has remained strong amid the chaos of rising prices.