Sioux Falls Real Estate Blog

 Tuesday, September 02, 2008

Just like the rest of the country, we've been talking a lot at the office about the upcoming Presidential election and its potential effects on our real estate market here in the Sioux Falls area. At this point, it's really anybody's guess at what will happen with interest rates. Historically, other than brief fluctuations, election results haven't seemed to have much substantial impact on rates.

What could possibly have a more direct effect on real estate buyers, sellers (and especially real estate investors) is the potential for changes to the current relatively low capital gains taxation rate when owners sell rental or investment properties. The general consensus is this, capital gains are now taxed at about 15% -- approximately 1/2 what they were under a previous Administration. Election results and later corresponding policy changes may change that -- if it does, those rates will most likely go back up.

The take-away is... if you've been thinking about selling investment property you currently own any time in the near future, sooner instead of later may be a wise course of action. If you don't intend to sell -- and want to hold your rental or investment property for the long-term... good for you! It's still a great investment. In our current economy demand for rental property remains steady, and the Sioux Falls area is one of the most stable real estate markets in the country.

Talk with your tax advisor to determine what makes the most sense for your personal investment portfolio. For more information on Sioux Falls area real estate, visit us at www.gregkneip.com

--Pam Kneip // pam@gregkneip.com

HJN Team Real Estate // 101 W. 69th St. Sioux Falls, SD 57108