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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: zebra4o1 who wrote (37211)8/7/2005 10:14:40 PM
From: DoughboyRead Replies (2) of 306849
 
But they turn around and put the money right back into real estate - inland california (e.g. Merced) and Arizona.

Not uncommon really; I did it to save 100k in capital gains taxes. Though the 1031 rules limit your options to RE, I still did my best to diversify: I changed the geography--from Washington DC to the Rocky Mountains-- and I changed the type of RE from residential to retail. But even retail seems quite a bit inflated these days. The smart money would take the proceeds from apartment/residential sales and go into office buildings; office vacancies are bound to go down in the next few years and rents will rise. It's risky now because they're hard to buy with any kind of cash flow, and rents are unusually depressed, but an all-cash buyer would be sitting pretty in 5 years if they gobbled up offices today.
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