New Investor Group Meeting & Biden: Potential Changes to Real Estate Investing

Willamette Valley Real Estate Investors is a new group that will have monthly meetings with the purpose of networking, learning and sharing about real estate investing. It is open to all levels of investors, including those who are still considering their first investment. The next meeting will be held via Zoom on Wednesday, December 2nd at 6:30-8 pm. This is a completely free group with the idea that a community and collective knowledge will help all members. The December meeting will be focused on goal setting and tackling those goals. If you’d like to be on the mailing list about future meetings and the topics, sign up at https://mailchi.mp/5d60757befd5/wvrei or email ryanlong@kw.com. Meetings are planned for the first Wednesday of the month from 6:30 pm – 8 pm. If you are on Facebook, please join the forum and see all the announcements: Willamette Valley Real Estate Investors Facebook Group

With a new administration always comes changes.  The following have been touched upon as possibilities.  None is close to a reality, but might be conversations to have with your CPA or consider how these could affect your investing or divesting plans:

• Tax credit for first-time home buyers – upwards of $15,000 (might be available at the closing table).
• Build millions of units of affordable housing.
• Alter a spate of restrictive zoning laws to increase development.
• Keep the GSEs Fannie and Freddie under conservatorship.
• Eliminate bonus depreciation of items that could be deducted 100% the first year.
• 1031 Exchanges may be eliminated or changed (capital gains taxes are deferred by purchasing another investment property).
• The stepped-up basis on inherited property may be eliminated or changed.
• Estate Taxes: Decrease the exemption from $11.7 million per individual being sheltered from taxation, potentially down to $5 million.
• Corporate tax rates may increase.
• The top tier tax bracket may be at a 39.6% rate rather than 37% that it is at present for income above $400k.
• Reintroduce sharper regulatory teeth to agencies such as the Consumer Financial Protection Bureau.

Again, these have all been items proposed or promised while campaigning. Nothing is definitive and the ability to make most changes would need approval from congress. There will be concessions and cooler heads will prevail in finding a middle ground on many of the proposals.