New Tax Laws Make it a Good Time to Invest in Real Estate

By Craig Emmerich, GRI, Team Leader
Craig's RealTeam, Keller Williams New Bern Center

According to NAR® statistics, in 2005, second homes made up around 40 percent of all existing homes sales. About 27.7 percent were purchased for investment properties and 12.2 percent were purchased as vacation homes.

One of the reasons for the strong rise in second home purchases is changes in the tax law HR 2014, with a provision that, when you sell your home, you can keep capital gains of up to $500,000 for married filing jointly or $250,000 for single. However, in order to qualify for the windfall tax break, you must have lived in the home two out of the last five years.

During that period, you could have taken a cruise for several months out of your "two years" and still qualify. Those of us who remember well the egregious capital gains taxes of years past, are amazed that even more people have not cashed in on this windfall and used the extra tax-free money to re-invest in real estate.

As a real estate broker, I strongly advise real estate to my clients as an investment that almost always rises in value. Real estate has far less risk than many investments such as the volatile stock market, for example.

Most of you know Arnie Edgerton, the listing specialist with Craig's RealTeam. One of Arnie's areas of special expertise is real estate investments. He owns and manages commercial and residential properties here in New Bern. Of course, being Realtors®, Arnie and I are well positioned to take advantage of the best properties as they come available.

Because of our real estate training and our experience in Craven County real estate, we can determine the true market value of a property, be it commercial or residential. This is a specialized skill most homeowners do not have, and it is why it is very important that you consult a Realtor® before you buy or sell real estate.

Keever Carpenter, our buyer specialist, is trained in how to locate the exact property that would be the most "ideal" fit for your needs. Keever works daily to increase her knowledge of Craven County's available inventory of existing real property, new construction, and even pending real estate projects that are still in the planning stages. Keever can tell you what to expect in Craven County real estate for years down the road, not just the present!

Our real estate training gives us unique insight into homes or real properties that would be a "money pit" and those that would be a good investment. You have friends in the real estate industry! See Arnie Edgerton, Keever Carpenter, or myself if you are interested in purchasing a second home for an investment or as a vacation home.

We can help you avoid the pitfalls of an unwise investment. We'll use all our combined real estate knowledge, expertise, and experience to assist you in making a wise decision.

Please feel free to contact us by email or call us at 252-649-0046 or TOLL FREE at 1-888-877-367-6321.

Visit Craig's RealTeam online at our website www.realteamnc.com or www.newbern-ncrealestate.com for free information about New Bern, NC and its neighborhoods; free reports and e-books related to real estate; a free NC travel guide; a free travel guide; and search our featured real estate properties and the Craven County MLS.

Remember, Craig's RealTeam aims to be your "New Bern NC Real Estate Specialists."

If you're interested in New Bern waterfront properties as an investment or a homesite, or are thinking of relocating to New Bern NC to retire and play golf, email us and ask for our FREE RELOCATION PACKAGE.