Builders have expanded their services to target the Baby Boomer generation, which is now approaching an average age of 60.  These services include elevators in new construction and home remodeling; wheelchair accessible doorways and bathroom sinks/countertops; benches in walk-in showers, Jacuzzi tubs, and in-law/caregiver suites on the first floor (which can include kitchenettes for live-in help).

In-law/Caregiver suites are becoming a more common option with builders, as demand increases.  People want to be independent for as long as possible, and the Caregiver suite allows them to remain in their home and get assistance for specific tasks.  

Master planned communities cater to the family, whether that family includes young children or empty nesters.  Their main premise is one of having “everything in one place.”  This means you do actually have a local grocery store, possibly within walking distance of your home, along with other retailers which may include the dry cleaner, bank, and an assortment of restaurant options.  This kind of community will most likely have at least one pool and the staff teaches Aquarobics to the older residents and how-to-swim clinics for the youngest residents.

Thoughtful builders and developers today are delivering a more complete community product, where you can stroll to the café for your morning breakfast, and pick up your dry cleaning on the walk back home for lunch. Youth gets to have the wisdom, love and presence of wise sages and elders have the presence of youthful energy and new ides to keep them on their toes. The idea of keeping communities intergenerational is a good idea for all.

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Real Estate 1031 Tax Deferred Exchange Overview

1031 Exchanges have been in existence since the 1920’s, but have really gained in popularity over the past decade.

1031 Exchanges deal only with investment property (rentals and raw land, for example) not with a primary residence.  This is a method to grow your wealth, tax deferred, and can work for a variety of individuals.

There are six basic requirements for a real estate investment to qualify as a 1031 property:

1)     Held for investment (one year plus one day)

2)     45 Day & Identification Rule

3)     180 Day replacement rule

4)     Qualified Intermediary Requirements

5)     Title Requirements

6)     Reinvestment of Cash/Equal or Up Rule

The toughest rules to contend with are rules 2 & 3 – these are calendar days and must be met in order to fulfill the 1031 exchange of property.  Therefore, if you own an investment property, you must identify 3 properties as target properties for purchase within 45 days of selling your investment. Then you must close on one of them within 180 days of closing on the property you sold.

There are no exceptions or extensions to these deadlines – Hurricane Katrina may have granted a few this past year, but don’t count on that in the future.

Qualified intermediaries should be an unrelated 3rd party to the transaction – not a family member, a Realtor or your attorney.  Title requirements dictate that how you held the title on the sold property is how you will hold the title on the new property.  Reinvestment has some further rules to it that space does not permit.