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California Property and Saavy 1031 Exchanges

A major money maker these days is realWhen a close friend of mine ventured out
estate. If you have a chunk of extra cash,West, my first thought was, why? He was
it is certainly a great investment if you cancraving the sunny beaches and abundance of
find the right area. A sure win nowadaysamenities. It wasn't long after renting a
seems to be California. Everyone is alwayswallet-breaking apartment for several months,
flocking there for the year-round sun andthat he decided to invest in some fine real
beaches. California real estate is a bigestate. After doing some searching, he found
money-maker. If you're looking to invest ina small home that fit his price range. I
a home to make a nice profit down the road,have to admit, when he first described the
then certain areas of the sunny state shouldhome to me, I wasn't that impressed. It
be considered. The prices always seem to dosounded like a lot of bucks for an average
nothing  but  rise.home. However, after a year had passed, he
decided to sell the house. This is where the
What many may not realize though is thatpayoff was clear. To my surprise he made a
Section 1031 in the Internal Revenue Servicewhopping 50,000 dollar profit on the piece of
is a boon for a prospective investor, sellingproperty.
an investment property and wanting to make a
profit by reinvesting in a similar propertyWhether you're looking to purchase a
elsewhere in the country. This wonderfulpermanent spot in California, or simply doing
concept works on the principle of gainsome investing, it is good to check all the
rolling from the old to the new. A 1031listings available. With the Internet, this
Exchange, like any real estate transaction,should be no difficult task. You just may
involves balancing competing pressures infind that diamond in the rough that's just
speed  and  quality.waiting  to  become  a  goldmine.
Prospects can be sorted through online. IfBear in mind prices vary by location, and the
you're moving to a specific area, there areperspective buyer or seller can do a great
websites to aid you in your search. Youamount of research online before ever
primarily want to find a home that willenlisting the help of a professional realtor.
increase in value no matter where you decideFor example, in southern California, it is
to live. Finding the best deals onpossible to search tens of thousands of homes
California land options is easier than everfor sale in San Diego County alone in a
before. The majority of us, when searchingvariety of price ranges through the multiple
for a home, look for something that fits ourlisting  service  or  MLS.
budget, but we also desire a safe
neighborhood. This can often be a difficultSeveral real estate publications are also
task.available and can be found in stands at many
convenient locations throughout the state. If
Let's face it, you have to fork out the bucksyou are interested in moving to a particular
to be safe these days. At least in the morecity, you can also contact the local Chamber
urban environments. The Internet allows youof Commerce for information regarding the
to really narrow down your search for ancity and the surrounding area. Historically,
ideal California home. This makes it thatproperty values in California have been
much  easier to stay within your price range.rising steadily, so why wait?



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