When you sell a rental property you'll owe capital gains tax on the sale, even if you buy a primary residence in the same year. One alternative to reduce your tax burden is to do a 1031 tax free exchange, but that means you have to buy a second rental property. A 1031 exchange may not be used for a primary residence. You might expect your real estate agent to make you aware of these tax implications but agents help buy and sell homes, they are not tax advisors.
Many Americans are buying second homes in Mexico. Developers are setting up second home developments in Mexico like an American condominium association. For Americans thinking of buying a primary or second residence in Mexico, here are some things to keep in mind before you sign the papers.
When you're considering buying an investment property that is pre-construction you need to look at the deal carefully. Certain areas of the country are awash in real estate investment properties such as condominiums. What do you need to consider if you're buying investment property with hopes of flipping it?
Potential home buyers should make sure the real estate agent they are working with has their best interests at heart. Home buyers must be careful when looking at a home that their real estate agent isn't also the seller's agent. Otherwise the home buyers' interests will not be most important to the real estate agent, who will make a commission on the sale of that particular home.
Working as an "apprentice" of sorts to the top Realtor in your area, you will soon learn how to be a very good agent. You can't ask for any better training than to watch a top agent work at her business day in and day out. Previous job experience and skills will also transfer over to help you with a new career in real estate.
