Reasons to Sell Your Investment Property in 2010

Attention Investors: I’m about to give you 8.8 reasons to sell your investment property in 2010. Actually I’ll give you 5 reasons, and then another 3.8 reasons.  8.8 reasons that will net you an additional 8.8% when you sell your investment property.  Guaranteed!  What am I talking about?  Capital gains taxes.

Many investors are already aware that  capital gains tax rates for most brackets are due to increase from 15% to 20% in 2011–so your profit is 5% less if you sell January 1, 2011 versus December 31, 2010.  5%!

But many investors haven’t yet realized that, buried in the health care bill that recently passed, for those above certain income limits, there is an additional 3.8% surcharge on real estate investment profit starting in 2013.

Of course there are ways to avoid these taxes–many investors will consider pursuing 1031 exchanges, but if you’re hoping to liquidate some of your real estate holdings, you’d be well advised to consider doing so in 2010.

Another reason to consider selling now?  Low interest rates. Buyers have more purchasing power than they’ve had in years thanks to historical low interest rates within the conforming loan level limits.  But these rates won’t last forever, and buyers are taking advantage.   A flood of inventory in the upper price ranges ($1,000,000 and up) in our area is expected in the coming years, which will create competition in those brackets for years to come, as financing remains tight.

If you own a Northern Virginia investment property and would like to keep 8.8% more profit by selling in 2010, contact Katie Wethman, CPA, MBA, Realtor for a free analysis of your home’s value.

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More Resources: Free Market Report for Your Property

Read More: About the Wethman Group and Wethman Group in the Press

Read More: Marketing Your Property

Read More: Myths About Choosing a Listing Agent

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North Arlington (Orange Line) Condo Update: May 2010

Zip Codes 22201 and 22203 (includes Ballston, Virginia Square, Clarendon)

Source: MRIS as of date of blog post. All data deemed accurate but not guaranteed. Stats exclude retirement communities and co-ops.

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1 BR Units 2BR Units
ACTIVE LISTINGS as of May 12, 2010
Average List Price $315,334 $496,847
Number of Active Listings 62 54
Average Property DOM(P) – Actives 50 65
SOLD LISTINGS for March 2010
Average Sold Price for Previous Month (does not include seller subsidies) $324,027 $480,748
Number of Sold Listings in Previous Month 27 28
Average Property DOM(P) – Solds 57 41
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