WELCOME TO The REAL ESTATE REPORT
| July 1, 2021
Altius Building Company is an award-winning Construction Management Firm, serving clients throughout Wisconsin. We specialize in multi-family, municipal, commercial, senior, and student housing developments.
Article | April 11, 2020
The construction industry has been slow to evolve, especially in the realm of commercial real estate (CRE). In many ways, the construction process is not dissimilar from how it was when the first skyscrapers were built. However, as technology begins to change various parts of the industry, especially how all stakeholders communicate, building information modeling (BIM) is playing a larger role. BIM stands for building information modeling, and it's essentially a way to create as detailed a model of a potential building as possible so that architects, developers, and construction managers can collaborate and answer questions before and during the construction process. The benefit of this is that all parties can share information and potentially avoid costly mistakes.
DFW has record low unemployment rates of 2.9 percent as of December 2019. The workforce gap between retiring baby boomers and up-and-coming workers is causing a labor shortage and skill gap. Large tech companies are offering aggressive compensation packages to beat out the competition. And never mind your corporate culture, workplace strategy, and proximity to hip coffee shops. These are real challenges for business leaders that require data to make the right decision for their organization. Solutions are out there, but you need a fresh perspective using data. There are hundreds of factors to consider, such as education levels, local workforce skills, or market sustainability, but let’s focus on age for now — specifically, the demographic age group of 20 to 34.
A 1031 exchange is used by savvy real estate investors to defer paying capital gains tax on the sale of an investment property. This is allowed by exchanging the first property for a second property the investor wishes to purchase. To put this in perspective, you would rolls the taxes of the sale of first property into the new property, deferring it until the sale of second property. Effective use of 1031 exchanges allows investors to leverage the proceeds of an investment property sale to build bigger real estate portfolios. Essentially, if you sold a building for $500,000, you would lose, say, $150,000 to taxes. With a 1031 exchange, you might be able to use the entire half a million dollars to purchase one or more properties. Normally, you would have $350,000 after paying taxes on a sale of your investment property which it would put a limit to potentially buy property in the future. By implementing a 1031 exchange, your purchasing power goes up almost 30%. That sounds like a pretty good deal—and a deferred 1031 exchange is one way to potentially help you achieve it. We use 1031 exchange with majority of our real estate investors. It's a great tax strategy for any real estate investor.
Almost everything right now is shifting to a virtual format. One of the big changes we’re adapting to is the revisions to the common real estate transaction, which all vary by state and locality. Technology, however, is making it possible for many of us to continue on the quest for homeownership, an essential need for all. Here’s a look at some of the elements of the process that are changing (at least in the near-term), due to stay-at-home orders and social distancing, and what you may need to know about each one if you’re thinking of buying or selling a home sooner rather than later.
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