How Could This Benefit DST Investors? Whether you are talking about a multifamily apartment building or a single-family home, low inventory means higher selling prices and a shorter sales cycle - all good news for the seller’s position. However, this low inventory could also cause trouble for a seller who will find it hard to purchase a replacement property to avoid a large capital gains tax bill at the end of their sale. The DST marketplace allows sellers to easily find a 1031 like-kind exchange for nearly every level of transaction, providing sellers with a strategy to not only defer their capital gains taxes, but also gain access to a more diversified portfolio with monthly cash flow potential.
MACRO REAL ESTATE TREND #1: HISTORICALLY LOW INVENTORY According to the National Association of Realtors, the available inventory of homes is down 22% in 2022 compared to 2021. Multifamily buildings are attracting institutional real estate investors, and according to the Wall Street Journal, vacancy rates for logistics properties fell below 4% for the first time in history.
THE AVAILABLE INVENTORY OF HOMES IS DOWN 22% IN 2022 COMPARED TO 2021.
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