We wanted to let you know that rates have dropped below 6% for conventional and FHA programs! Now’s a great time to let us help you find the home of your dreams…so give us a call at 860.429.2853 or search listings on www.ConnAreaHomes.com!

Have a Happy Thanksgiving!

In an Unprecedented Move Banks Across the World Lower Interest Rates

In an unprecedented move, central banks across the world joined in lowering interest rates yesterday by 0.050%. This move follows Washington’s passing of the $700 billion Rescue Plan.

Fixed rate mortgages remain very attractive and home prices are more affordable. The opportuniity to have such low interest rates when prices are so affordable is unheard of.  Most first time home buyer’s cannot even begin to imagine what it was like in the days of 9% interest rates, never mind double digits! 

The government is working hard to strengthen the financial markets, as confidence returns, this could cause home loan rates to rise in the coming weeks and months.

To find out more about the current real estate opportunities in the UConn and Mansfield Storrs area, as well as throughout the entire Eastern CT. region, call the Burns Real Estate Group for information and advice – (860) 429-2853.  Make it a great day and a great year!

New 1031 Exchange Rules

We all want to save money on taxes!  The Burns Real Estate Group understands that one of the best ”tax deferring” strategies for real estate owners and investors is a 1031 tax exchange.  Not only in the Conn area, but in any other real estate market, when one property is sold, and a  new property is bought using the 1031 gudelines – (which must be strictly adhered to) – the owner can defer paying income tax on capital gain generated by the sale. 

The new property must be a similar, “like-kind” property.   We understand that this language is confusing to many people who are not familiar with a 1031 exchange so it is important to know that almost any kind of property is considered “like-kind” with any other property! At The Burns Real Estate Group we continue to help many people make great investments and are very knowledgable about the 1031 tax exchange. 

Recently there has been a  review of the 1031 rules and it was noted that one loophole needed to be changed.  A seller/investor could potentially make the exchange and then, after using the new property as a primary residence for 2 years, may not have to pay the the deferred tax.  A recently enacted law closes that  loophole in the Section 1031 rules.

The American Job Creation Act of 2004 ruled that properties converted from a 1031 exchange property into a primary residence must be owned and used as a principal residence for at least five years, instead of two years, to qualify for the tax exemption.  The benefits of a 1031 exchange are still in place except for this change and if appropriate,  it is a great strategy to use when buying and selling property.  In the Conn area there are many people who take advantage of the 1031 tax exchange –  amazingly enough, it is pretty simple and straight-forward, but you will want an experienced 1031 specialist to guide you through the process!