Category: investment

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Real Estate and Stagflation | Turning a Crash into Cash

Downtown areas today present historically low prices for real estate investors.

Stagflation is the Name of the Game: The Dollar is Dust

REAL ESTATE NEWS (Los Angeles, CA) — Jawbone Jerome Powell today attempts to placate markets by raising interest rates. Unfortunately, Jerome’s half-hearted attempt at finally correcting radical fed monetary policy is too little too late. Inflation is already out of control, and cannot be fixed by increasing interest rates to 4, 5 or 6 percent. We are witnessing major changes, including the way we make, spend and save money. The U.S. Dollar is being replaced by blockchain cryptocurrencies. The laws of economics are fundamental in this analysis: Good money chases out bad. New money destroys old. Blockchain cryptocurrency annihilates the value of the US Dollar, which results in inflation. Radical fed policy and digital money printing results in inflation. Uncontrolled federal government spending results in inflation. Raising interest rates to 6% can put a slight dent in our runaway inflation, but cannot contain inflation that has such historic pressures pushing toward rapidly growing inflation.

We’re watching these changes play out in the form of stock market crashes that quickly end up at all-time highs, along with a real estate market crash that will also quickly end up at an all-time high. These are the effects of stagflation: economic stagnation combined with price inflation. It’s a one-two punch towards a terrible economy. That’s why the U.S. has the most pessimistic economic polls in many years.

As we mentioned recently, the billionaires and other astute investors are taking full advantage of the crashy stock market by picking up stocks on the cheap from the gut-punched dumb-money investors. With plenty of blood on the street, this fearful time is precisely the time to start picking up some good deals in the stock market in the form of high-quality stocks. For real estate, now is precisely the right time to pick up high-quality properties, while they are historically low-priced, in lockdown-depressed inner-city areas such as Downtown Los Angeles.

Get a free list of the the top ten best investments in Downtown Los Angeles real estate. Fill out the online form:

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Penthouse level properties exemplify the high-quality real estate that is near a historical low point in urban L.A.
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1031 Exchange Los Angeles Investment Properties

REAL ESTATE NEWS (Los Angeles, CA) — Section 1031 of the U.S. Internal Revenue Code 26 U.S.C. § 1031 allows for the exchange of certain types of property, allowing the investor to defer the recognition of capital gains or losses due upon sale, and to defer the capital gains taxes.

The 1031 exchange (also called a like-kind exchange or a Starker) is a swap of one business or investment asset for another. Although most swaps are taxable as sales, with a 1031, there will be no tax or limited tax due at the time of the exchange. This allows the form of the investment to be changed without (as the IRS sees it) cashing out or recognizing a capital gain. That allows the investment to continue to grow tax deferred. The new property must be found within 45 days of old property escrow close. The new property escrow must close within 180 days after the sale of the old property.

President Biden has proposed limits to 1031 exchanges, which would have consequences for investors, and for the economy. If the proposal is approved, the most savvy of wealthy investors would likely respond by holding on to property, with the expectation that the tax code will change again in the future.

Get a free list of the top ten 1031 Exchange investments. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

1038 Exchange allows real estate investors to defer taxable gains.

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. This is not an offer to buy or sell securities. All investments involve risk, including possible loss of principal. All information provided is deemed reliable but is not guaranteed and should be independently verified. This does not constitute financial advice. For financial advice, consult a certified financial advisor. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.