Montana 1031 Exchange The Reason Different Markets Are Required To Protect Wealth

11/23/2018

Montana 1031 exchange qualified Intermediary, 1031 Property Exchange,

points out  the importance of selling in inflated markets to find increased opportunity

and decrease your risk in other geographic markets. 

 

"Real estate has always been a very localized product and all markets

Nationwide do not go up and down at the same time or speed", says Rusty

Squire, Qualified Intermediary and President of 1031 Property Exchange.  He

adds,"Investors will need to begin paying close attention for their profits, especially in highly inflated markets in view of the recent

increases we have seen in interest rates". 

 

"Increasing interest rates always act as a discounting mechanism for the

Value of housing because as prices grow less and less people can afford a specified home", says Squire.  He adds,"If distribution remains constant and buyer

demand is falling this really is a recipe for price declines". 

 

"Montana 1031 exchange markets are generally all resort or holiday

oriented  and holiday homes would be the first thing to see if the economy hits a

rough patch", says Squire.  He adds,"This is why resort markets saw

nearly double the rate of decline that primary home markets did in

2008". 

 

"Real estate markets in Montana, notably Bozeman and Big Sky, are considerably

overheated and there are different geographies across the nation who have seen

much less price appreciation that are poised for prospective profits", says Rusty

Squire, Qualified Intermediary in 1031 Property Exchange.  He adds,"Montana 1031 exchange markets are usually over their 2008 peak ahead of the property collapse along with lots of the other markets across the country

aren't". 

 

"Investors Will Need to start thinking about where the biggest generational

Ownership group, the Baby Boomers, are going with their money", says

Squire.  He adds,"Resort markets are extremely likely to blow off and lose

incredible value as the aging Baby Boomers liquidate". 

 

"Markets like Arizona nevertheless sit well under their 2008 high costs and

Will benefit from retiring and aging Baby Boomers", says Squire.  He Adds,"Colder northern climates will probably be benefactors and may be a

very good time to market in those northern hotel markets like Jackson, Bozeman,

Big Sky, Sun Valley and many others and move that money elsewhere". 

 

"In a lot of instances these big-name resort markets have seen two and three-fold

Increases off of their 2008 lows but where is the huge group of buyers that are

going to push these markets ahead later on", says Squire.  He adds,"I really don't see it and investors have to continue being smart about diversifying

their real estate investment dollars geographically to account for where demand

will grow". 

 

"Investors need to attempt to prevent the geographical trap of constantly

Investing in the same communities, generally the communities they live in,

simply since familiarity makes them comfy", says Squire.  He adds,"As we saw in 2008, property may lose a great deal of worth in a big rush and

thinking that will never happen again isn't wise and won't protect your

gains". 

 

If you would like help understanding your 1031 exchange options then only

Telephone Rusty Squire, Qualified Intermediary in 406-425-2742.

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