No Summer Lull This Year

We may have lost the spring real estate season, but we aren't losing the summer!  Our leads on LoopNet are the most plentiful they've ever been, and our agents are busy.  Given the uncertainty of the pandemic's return, this is either the calm after the storm, or the calm before the second storm (or both).  In either case, buyers are out looking.  

Many of them are thinking that properties will be available at rock-bottom rates, but, as with residential, the supply is too thin for that to be so.  Some lookers are New Yorkers, seeking to move businesses, or just invest where they may have a second home. Some buyers are local, and know that certain property types are hard to find.  The investors may be from anywhere, and we've been finding that they look at many offerings at once, often of completely different types.  

Connecticut, after decades of coming out on the losing end of many measuring metrics, such as job growth or personal income growth, is now enjoying its moment in the sun, as the state that is beating back COVID.  Isn't it nice to be good at something?  So keep wearing those masks, people, so that the buyers stay active and well, and the sellers do too.  That way, everyone wins.

The Next Big Thing: Opportunity Zones

As part of last year's Tax Act, there is a new way that investors can use their money to minimize taxes and invest in real estate.  Opportunity zones have been created around the country, and there are 72 of them in Connecticut, with 7 of those in New Haven, 7 in Bridgeport, and 10 in Hartford.  People can substantially rehab or build new structures in those zones--or even invest in operating businesses--and postpone taxes or even have them forgiven, under certain circumstances.  Residential and commercial real estate are both covered.  Much of the program is similar to the 1031 exchange option that has been around for years, but is broader, if the investment is in those particular census tracts.

We've been told that even accountants and lawyers may not be up to speed on this investment potential, because only recently have the zones been finalized.  You can find the Connecticut interactive map on the www.ct.gov site.  Because the rules are specific and unforgiving, it's best to check with tax professionals before buying, but looking can start immediately!  It isn't that often that we have something so new to share, and we're glad that real estate is included.