Here are a few situations where we can help you.
Boston is an amazing city with many different neighborhoods that offer their own advantages, proximity to institutions, culture, shopping, and restaurants. Boston's robust economy is a key player in the global economy with its dynamic, diverse, and well-balanced emphasis on education, innovation, and a wide range of industries.
Click HERE to set up your search criteria to see what is currently on the market and to see when new properties are listed. This will automatically email listings to you through the Massachusetts Multiple Listing service (the same service that Massachusetts Real Estate brokers use to know what properties are for sale).
Click HERE to explore different neighborhoods to decide what areas you're most interested in.
Email [email protected] to discuss your situation.
Consider purchasing a condominium as an investment that runs parallel to your child’s stay in Boston (the condominium could even continue as a rental property, if desired).
Purchasing a condominium for your son/daughter to live in can make excellent financial sense and it’s a place that your child can call “home” while in Boston.
Owning the property where your child lives for their college years gives your child consistency, stability, and security for the time they live in Boston.
Purchasing a condominium in both your name and your child’s name creates an even more favorable investment. In the City of Boston, an owner-occupant (which your child would be since their name would also be on the deed) gets a real estate tax abatement for each year that they owner-occupy. In 2023, the residential exemption is $3,456.60. So, if the real estate taxes are $6,000/year, by applying the residential exemption, your real estate tax would only be $2,543.40. That becomes a significant savings. (www.boston.gov/departments/assessing/residential-exemption). If you purchase a property and your child has a roommate that pays rent to you, you should be able to depreciate the property. Example… Purchase a property for $1,000,000. The land portion is valued at $250,000 and the building portion of the property is valued at $750,000. Depreciation is typically calculated as $750,000 / 27.5 years = $27,272.72 as a yearly deduction. The income from a roommate(s) offsets expenses such as monthly condominium fees, real estate taxes, insurance, and mortgage payments. Any yearly loss offsets/reduces your personal income taxes. Ask your CPA how you could benefit from the depreciation, write-offs, and potential income. But most importantly, your child has a home while in Boston that is also a financial vehicle for future appreciation.
Click HERE to set up your search criteria to see what is currently on the market and to see when new properties are listed. This will automatically email listings to you through the Massachusetts Multiple Listing service (the same service that Massachusetts Real Estate brokers use to know what properties are for sale).
Click HERE to explore different neighborhoods to decide what areas you're most interested in.
Email [email protected] to discuss your situation.
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Investment property is purchased for income, equity growth, asset banking, portfolio balancing, and write-offs/depreciation; offset the costs of renting. Boston is a world class city with diverse economic forces: 150,000+ college students, an extensive medical community, a mature bio/pharmaceutical industry, a world class financial community, an abundance of museums, art galleries, and other cultural enterprises
With condominiums, multi-families, apartment buildings, and commercial properties, there are long term opportunities in Boston.
Do/will you have a child going to college in Boston? Sometimes the best investment is determined when comparing the costs of renting them an apartment for 3 or 4 years (without any financial upside or quality control of the property) vs. buying a condominium for them to live in. Click HERE to learn about parent/child housing purchases.
Email [email protected] to discuss your situation.
There are always different exit strategies. What is best for you? An outright sale or a sale utilizing a 1031 Exchange?
In an outright sale you will have income taxes to pay on any capital gain or the recapture of any depreciation.
A quick 1031 Exchange explanation: A 1031 Exchange allows investors to defer Federal capital gains tax, state ordinary income tax, net investment income tax, and depreciation recapture on the sale of an investment property if certain criteria are met including:
- Buy a replacement property for equal or greater than the property you are selling and reinvest all proceeds from the sale (Exchange).
- Identify replacement property within 45 days of close of sale.
- Purchase replacement property within 180 days of close of sale.
- Must Sell and Buy property that is considered “like-kind” to each other.
- Process must be handled by a Qualified Intermediary (QI). Qualified Intermediaries are fee based, providing the handling of the funds and transaction format so you stay within the IRS guidelines. Click HERE to learn more about 1031 exchanges.
By utilizing a 1031 Exchange, there’s the opportunity to create a larger investment by selling (exchanging) this property with another investment property (or properties).
When planning to sell any property, you should think carefully about your exit strategy, specifically your timing and pricing the property to sell (to avoid helping to sell someone else’s property by the wrong timing or pricing). Sometimes the best strategy is the simplest but usually it requires planning. We are happy to speak with you about what makes sense for you; whether an outright sale or rolling your property into a bigger investment for the future.
You should always speak with your accountant to see how any real estate transaction affects your particular situation.
Click HERE to set up your search criteria to see what is currently on the market and to see when new properties are listed. This will automatically email listings to you through the Massachusetts Multiple Listing service (the same service that Massachusetts Real Estate brokers use to know what properties are for sale).
Click HERE to explore different neighborhoods to decide what areas you're most interested in.
Email [email protected] to discuss your situation.
Since 1989, we’ve been helping people with their real estate needs. Whether you’re renting, buying, selling or investing, we are here to help.
