George Real Estate Group Radio Broadcast

Your Property, Your Children's Future: The Tax-Smart Inheritance Guide

• George Real Estate Group

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Western North Carolina's real estate market is thriving despite widespread misconceptions about interest rates and economic uncertainty. While many believe real estate must be struggling, Henderson County has seen more homes sold this year than during the same period last year – 582 single-family homes compared to 566. Though the average price has dipped slightly from $543,000 to $526,000, the median price holds steady, showing continued strength in the market's core.

What drives this resilience? For one, about 30% of Henderson County's home purchases are cash transactions, reflecting substantial equity positions many homeowners enjoy. More fundamentally, real estate transactions follow life events, not just economic conditions. Whether you're retiring, relocating, or changing family circumstances, these life transitions happen regardless of market conditions.

Beyond traditional buying and selling, the George Real Estate Group specializes in sophisticated investment and estate planning strategies. Many property owners don't realize the tax advantages available to them – from the $250,000 capital gains exclusion ($500,000 for married couples) when selling a primary residence to powerful 1031 exchanges that defer taxes when reinvesting proceeds from investment properties.

For those considering their legacy, Delaware Statutory Trusts (DSTs) offer an elegant solution to common inheritance challenges. Unlike traditional property inheritance that may force siblings into unwanted co-ownership or trigger partition sales, DSTs allow for simple division of interests while maintaining professional management and tax advantages. They're particularly valuable for owners who've fully depreciated their properties or who want to transition from active management to passive investment.

The summer season brings additional vibrancy to our region through the thriving camp industry. With over 50 summer camps operating across three counties, these institutions not only create meaningful experiences for children but generate hundreds of millions in economic impact throughout Western North Carolina.

Whether you're buying your first home, selling an investment property, or planning your estate, let us help you navigate today's opportunities with clarity and confidence. Call the George Real Estate Group at 828-393-0134 or visit us in Flat Rock to discover how our comprehensive approach can serve your unique real estate needs.

Speaker 1:

Hello friends, thank you so much for being here. This is the George Real Estate Group podcast, which is a production of our live weekly radio shows hosted on multiple radio stations here in Hendersonville, north Carolina. The George Real Estate Group serves Western North Carolina and upstate South Carolina and it is a privilege to share positive news about our local real estate market and community. Thanks so much for subscribing and, of course, if you have any real estate questions or if we can help you in any way, be sure to reach out. Visit us at georgerealestategroupradiocom for more information. Good morning and welcome to the George Real Estate Group live radio broadcast here on the queue every Monday morning, sharing with you positive news about your local real estate market and community. We're so grateful to be here with you Our first show of June. Time's flying when you're having fun a lot to be thankful for and grateful for. We're here every Monday morning sharing with you positive news, and we are going to dive into the real estate market. We're going to dive into. We're helping more and more clients with their investment properties in addition to their personal properties, and that touches into tax strategies and touches into estate planning and coordinating working with your tax professional, working with your attorney working with when you're looking at your investments in real estate. Again, it's looking at the bigger picture and having the right people and the right team in place from your real estate professional to your tax advisor, to your attorney. We work with all of them in concert to ultimately help you navigate through how you want to plan ahead and what that means for your future and what that might even mean for your children and your heirs. Again, there's a lot of things that we're helping our clients navigate through and we'll dive into that conversation as well. We'll also dive into everybody's. You know it's always fascinating when people, you meet someone and you share that I'm in real estate and they're like oh, you're in. Real estate must be rough and the interesting thing is we're actually having an incredible year. We've already helped more people this year than we did last year, year to date. Year to date last year versus year to date this year, we're trending ahead and we're grateful to serve the community through real estate.

Speaker 1:

We know real estate happens regardless of the interest rates, regardless of the economy or the environment. I mean, the real estate is driven around life. Life happens, therefore, real estate happens and it's not necessarily the market's the market and we navigate in the market. We navigate through whatever interest rates they are. I mean, if you were to look at the last 50 years of interest rates, we're right there within the 50-year average of interest rates, which is, again, it's all about perspective and your perspective and context. I mean it's so funny to talk about so many of our clients that went through the 80s and they were thrilled if interest rates were below 10%. Again, it's all about the perspective and context. But we still see about 30% of our sales in Henderson County are purchased with cash and that's also reflective of the number of homeowners in the United States that have their home paid off. Also, over 50% of homeowners have over 50% of equity in their home as well in the United States. So, again, regarding your personal home or your investment property or your investment portfolio, whatever it might be, we can help navigate and put a plan in place to help you decide what's right for you in the current environment. But there's different reasons that you might consider buying or selling and we'll dive into some of that.

Speaker 1:

But before we do that, the George Real Estate Group we're located in Flat Rock, right next to the Flat Rock Bakery, hubba, hubba Barbecue Campfire Grill. Our new friends at Hubba Lou, the former honey and salt location, are great. We're just so grateful to. I mean it is so busy. We're so thankful we see all the camp families coming through camps. You know, gearing up, I mean the camp industry. I mean hundreds of millions of dollars of economic impact in our community that we benefit from. You know, from the restaurants to the hotels, to the Airbnbs, to the jobs that are created by the camp industry, not to mention the lives of the camps. Impact with the children going to camp. Camp's such a powerful environment for children to get them out of, get them off the technology, get them out into the world. Again, very passionate about the summer camp industry and grateful for the camps that serve our children here in the area Over 50 summer camps in the three counties.

Speaker 1:

You may or may not realize that industry's here in our community but again, massive impact. But we do tend to see a lot of camp families coming through the Flat Rock Village there this time of year and certainly people are still coming and visiting and people discover Western North Carolina. They discover the quality of life and it's the conversations we're having every single day from people all over of life and it's the conversations we're having every single day from people all over. Not only are we helping our clients here locally, but we're helping people that are relocating to the area, people that are considering here whether it's retirement, or maybe people are moving their dreams forward, considering moving here before retirement, bringing their jobs with them. There's so many different reasons why people come to the area here, but, again, real estate happens around life. It could be a really positive reason or it could be a challenging reason. Whatever it might be, we'd love to have the conversation. Give us a call 828-393-0134, 828-393-0134. Find us online at realestatebygregcom.

Speaker 1:

We also podcast all of our radio shows. You can find that on your favorite podcast platform, whether it's Apple, amazon, alexa, spotify. You can look up the George Real Estate Group radio broadcasts. But we're grateful to be here every Monday morning sharing with you about the local real estate market and also, if you thought about a career in real estate.

Speaker 1:

Actually, I saw in the industry I mean, the industry is in a bit of a, you know, just a lot of change in the industry, but what has not changed again is the advocating for our clients and helping our clients, and there's so much opportunity We've been able to help so many people and so we're grateful. We're having conversations every single day with buyers and sellers and investors and, again, people, I was going to say with the real estate industry. All the change is happening. We've seen so many. A lot of real estate agents are changing, making changes. There's new agents getting into the business, there's agents getting out of the business. But I mean, at the George Real Estate Group, we're growing, we've hired more agents, we are helping more people and we're helping our agents and ultimately, we're helping our clients navigate through the ever changing real estate market.

Speaker 1:

But again, what hasn't changed is the advocating and and and helping our clients make a. You know if they're looking to sell or buy or they're going to buy and then sell. I mean there's so many different ways you can go about it. And then, looking at your investment properties and the tax implications, I mean, uh, the conversations I'm having, I am having with'm having with people that own large real estate portfolios they could own a portfolio of investment properties and rental properties and again, how they're planning ahead for their children and their estate and what that looks like and what the estate taxes and what the tax implications, and we'll dive into that as well.

Speaker 1:

You know, in the last seven days just to give you a snapshot, just a last seven days snapshot in Henderson County there's been 43 new listings, there's been 69 price decreases, there's been 42 homes go under contract and 31 homes closed. I was just curious, and this is single family homes. This is just a snapshot into Henderson County single family homes. I'm not referring to land or townhomes or condos, just a snapshot into the single family home market 43 new listings, 69 price adjustments, 42 homes went under contract and 31 homes closed. But if you look at year to date, because I think that tells a story, year to date this year there's been 582 single family homes closed in Henderson County and during the same time period last year, 566. During the same time period last year, 566. So we've had about what is that? A 16, there's been 16 more single-family homes sold year-to-date this year versus year-to-date last year.

Speaker 1:

Again, it's a strong, healthy market. We have a steady market. It seems to have. You know it's holding its own. As to the baseline as to the number of single-family homes selling in Henderson County, I mean we're averaging. If you look at the last 12 months, we're averaging 125 single-family homes a month selling. Now the average price year-to-date this year is at $526. That is lower. The average price year-to-date last year was at $543. So a decrease in the average price. Year-to-date last year was at $543,000, so a decrease in the average price. But the median price is holding, which tells you the more affordable price range is still very strong. I mean we continue to see strong demand. I mean right now the active homes on the market only 564 active single-family homes on the market. The market remains steady. Again, supply and demand.

Speaker 1:

And now your unique home, your unique situation. We take a very specific approach and again we do a two-step approach. We usually come out and see the home, then we usually do a market analysis and we're able to give you clarity, give you information and again provide information so you can decide what's right for you in the buying and selling process. And again providing information and then ultimately advocating and facilitating again what your goals are in regards to real estate and in regards to your personal home. Now we talk about this a lot with taxes, with selling your personal home.

Speaker 1:

If you've lived in the home two out of a five-year period and it was your primary home, you do not pay as an individual, the first $250,000 of profit on selling your personal home. As a married couple, it's $500,000. And then a lot of people don't realize this If you've had children living in the home and they were on the deed, they also children living in the home and they were on the deed they also it's actually up to a million dollars for $250,000 per person. Again, if you have other people living in the home personally again there's some different people may or may not be aware of that Again, if you've lived in the home two out of a five-year period and you're on the deed as an individual, it's $250,000. As a married couple, it's $500,000. If it was multiple people living in the home that own it, it's up to $1 million Again, $250,000 per person. The other tax event is selling an investment property. Now you will have capital gains on your investment property, but there is a solution for that and there is a thing called a 1031 exchange where you as a investor, a real estate investor, there's ways to defer taxes and reinvest the gain when you sell your property. And it's called a 1031 exchange, the IRS code, section 1031. It lets you swap one investment property for another without immediately paying the capital gains.

Speaker 1:

Now, there was some misconceptions about this previously, years ago, maybe 40 years ago. It was called like kind. You know, you can. You know any type of real estate investment can be exchanged for another. You could take a rental house for an apartment building. You could even take an office for land or land for an office. It could, as long as you know, both the old and new properties are investments or business use in real estate. You know, so it can be used. It doesn't have to. You don't have to go from a house to a house. You don't have to go from land to land, and this is so interesting. You could sell land.

Speaker 1:

That was, you know, again, considered real estate investment. You can sell land and move it into a rental property. You can move, you know, you can move multiple rental properties into a bigger apartment building. You could sell your apartment building and move into something else. Again, there's a lot of different options. And again, when you sell so this is where normally, when you sell a property for a profit, it triggers capital gains taxes, which could be upwards of 30 plus percent. Also, there's a recapture of depreciation which, again, so there's a lot there could be some significant tax implications, and so a 1031 exchange means you keep 100% of your sale proceeds working for you on the new property. It allows you to preserve your equity and build wealth by rolling it into bigger or more profitable properties and again, we've been helping clients with 1031 exchanges.

Speaker 1:

There's certainly some guidelines and some rules that you have to abide by, which we'll touch on, but again, just wanted to touch on this because this is a conversation we're having more and more with our clients as they're planning ahead with their estate and thinking ahead with their investment properties. Maybe you're done managing it. Maybe you're done. Maybe you want to think through with what are the implications for my children when they inherit it, and there are some interesting things that we'll touch on. But again, there are so many things that we help our clients with, from their personal home to their investment homes and their real estate investments. But we'd love to have the conversation. There's no pressure, there's no cost, there's no obligation. Give us a call at 828-393-0134, 828-393-0134.

Speaker 1:

We're here every Monday morning sharing with you positive news about your real estate market. Our goal is to educate and to share about what's going on and, again, to share things that maybe you haven't considered in your planning, but we're here every Monday morning. We have a short break coming up and, of course, you can call us directly. We're so grateful and excited and we're helping so many people. We have an incredible team in place. But give us a call 828-393-0134. Find us online at realestatebygregcom, but stay tuned in. We'll be right back right after this break.

Speaker 1:

Good morning and welcome back to the Georgia Real Estate Group live radio broadcast here on the Q every Monday morning, sharing with you positive news about your real estate market. We're so thankful to be here. I know my kids were grateful to have. This is their first Monday out of school, friday finishing up school and congratulations to all the students and the teachers. And here we go. Here's summertime, and again hope. And here we go. Here's summertime, and again hope. You're enjoying your summertime. We're as busy as ever and we're so grateful.

Speaker 1:

We have an incredible group of agents. We have incredible staff, we have an incredible team. It's not just our agents, not just our staff, but all the service providers we work with. That just in sync with our team and helping our clients, from our attorneys to our tax advisors, to our financial advisors, to our attorneys, to our surveyors, to our appraisers and home inspectors. And pest inspection and septic and well, and you name it. We have an incredible group there to help you navigate through whatever it is with your real estate. It's a collective group working together to help you navigate through all your real estate questions and things that you might come across. I mean, we're talking every single day, helping people navigate through all of that and, again, providing information so you can decide what's right for you as you think through, what are your plans, what are your goals and, again, is it just deciding what's right to do? But we are seeing again, the market's still very strong, very healthy, and we're helping people navigate through that. But one of the things that we've been helping our clients navigate through is with their real estate investments, and maybe you're managing your current real estate investments and we certainly can make recommendations to property managers. But there's also some options to consider Again, as you're thinking through what it looks like with your real estate portfolio and what it even means for your children and what you could you know as to, like you know, do what you're going to leave them in your in regards to your estate and the you know with the estate planning, and there can be different advantages to that, but one of the things that I we've had we've actually come across and you may or may not know this, but you know.

Speaker 1:

But in North Carolina you know, if you own property with somebody else and this is outside of marriage, but if you own property with somebody else, and this is outside of marriage, but if you own property with somebody else, it could be another sibling, it could just be another individual that you own property with. There is a thing called a partition sale In North Carolina. You cannot be forced to own property with somebody else and you can actually petition the court for a partition sale and you don't have to stay in ownership with somebody. So it's interesting, if you have a large real estate portfolio and you're planning to leave it with your children and you're thinking, hey, long-term, I want my children to own this real estate portfolio, well, if one of the children, after they inherited, do not want to own with their sibling, they could actually partition the court to sell the property if they're owning the real estate together. And of course, these are conversations that we're going to have and recommend. You're going to certainly seek legal advice. You can talk to an attorney, but we have attorneys we're working with. We have, again, tax strategies, we have tax consultants, we have financial consultants we work with.

Speaker 1:

But there are options to consider where you can sell your existing real estate, move it into. There's a solution called a Delaware Statutory Trust Solution, where it's a legal trust structure that allows fractional ownership of real estate and it's very popular for replacement property exchanges with investors, where investors are able to own large shares of professionally managed properties while deferring taxes. And again, it can be very powerful in your estate planning and it also allows you to move your real estate investment from, let's say, you're actively managing it. You can move it into these professionally managed properties, but it allows you to buy into larger institutional level real estate investments. Again, it could be things such as office buildings or apartment complexes or student housing or retail centers, but no single investor has the exclusive ownership of it, but you're allowed to own shares in it and to participate in the income and in the appreciation and participate in the depreciation.

Speaker 1:

This is a very specific group of people out there, if you're listening, but it may be. You have owned real estate so long that you have taken the entire 27 and a half years of depreciation and you no longer can depreciate the property. It's a very specific niche. But maybe you own real estate that you fully depreciated and you're asking yourself what can I do? How can I? What can I do? I don't want to pay the capital gains on it but, by the way, when you sell it you have to recapture the depreciation.

Speaker 1:

The 1031 exchange into the DST is an incredible thing to consider for a number of different levels and again, the IRS approves the 1031 exchanges and the DST as a like kind for the 1031 exchanges. Again, the DSTs are often large, high quality, vetted assets like, again, apartment complexes, retirement communities, commercial buildings, medical facilities, these are there's so many different, there's so many different options that you can consider and again, these are vetted properties. Again, if you want more information about this, but again, if you're curious about strategies, you've already depreciated your real estate investment all the way and you're curious and you're also thinking about what are the implications for my children? Maybe my children don't want to be in ownership together and I want to set my children up for success. I want to set up my legacy up for success for my children and my grandchildren.

Speaker 1:

Again, there's some benefits to the DSTs combined with the 1031 exchanges and again, it can. Full deferral of capital gains. You can also, and in regards to the depreciation, recapture taxes. Again, these are so many things that you might be surprised exist. And again, it's more information. I apologize for getting into the weeds, but I'm just wanting to give you enough information where, again, we have incredible resources and professionals from the legal side to the tax side, to the financial side, we are working in concert with to help really set you up for your future and your success and the legacy that you want to consider as you are thinking ahead.

Speaker 1:

And again, the kindest thing you can do for your family is planning ahead and there's some strategic ways to do this. And again, for your family, in regards to making you know as to, like you know, the making your, the inheritance simpler. Instead of managing a building or portfolio, heirs can actually receive an investment interest like a security that they can, that can easily be divided or sold. And again, if the beneficiary decides to liquidate it, the you know the capital gains taxes you gains taxes is minimal or zero because of the step-up basis. Again, a lot of the weeds I'm getting into, but again, give us a call if you have real estate investments. It could be raw land. It could be a portfolio of rental properties, it could be an apartment complex, it could be, maybe own a park like an RV park, or maybe you own a retirement community, whatever it might be. Again, love to have the conversation about this and again, it's worth understanding and hearing more about.

Speaker 1:

Again, there are some things to consider as you're considering all these things and you're planning ahead, and so we've been helping so many clients, not only with their personal residential sales and again, but also helping with real estate investments, and again, it's through the team that we have in place. Again, there's so many examples of this. You know again where. Again, maybe you've been managing property for decades and you're just tired of the management of it, and again, there's different solutions for that. Maybe you've been managing property for decades and you're just tired of the management of it, and again, there's different solutions for that. That we've been helping our clients navigate through. Give us a call 828-393-0134, 828-393-0134. We're not just helping our clients navigate through the buying and selling of their personal properties, which is so critical. We love that. We're passionate about helping our clients do that. We're also helping our clients with their real estate investments, and again, it's a powerful wealth management tool the 1031s and the DSTs I've been sharing with you about it can be part of your planning ahead. Again, there's so many benefits that you can maximize in thinking ahead and again, we have an entire team in place to help you think through all of this. Again, we'd love to have the conversation. Give us a call, 828-393-0134.

Speaker 1:

If you're just curious about the value of your homes, if you're curious about the value of your real estate Again, I hear this all the time why would I consider selling my investment property? Because I'll have all these capital gains taxes. But we have solutions for that to consider. Again, love to help you talk through that. A 1031 exchange can defer your capital gains taxes now. You can help your kids avoid a big tax bill later and again, you can continue earning a rental income without the landlord headaches. So many things to consider. Plus, these options can help your children in their inheritance and with your estate planning. A lot to consider Again, if you're just curious and want to have a conversation about any of these topics, call us today, 828-393-0134. Find us online at realestatebygregcom.

Speaker 1:

Also, I wanted to mention the Ice Cream Social, for Flat Rock is this Saturday, which the George Real Estate Group will be out there. This Saturday it's the Village of Flat Rock hosts this annual Ice Cream Social from noon to 4 pm. The merchants of the Village of Flat Rock will be selling refreshments there that ultimately go back to our local schools. All the proceeds go, everything's donated with our tent and then all the proceeds go to our local schools. To get back here, to our schools here. But this coming Saturday from 12 to 4, come out and say hello to us at the George Will State Group. We'll be there helping with the Village of Flat Rock merchants. Again, come out for the ice cream social. If you can't make it out to that, stop by our office there in Flat Rock, right there on Rainbow Row. But thank you so much for tuning in this Monday morning. We're so grateful, we're passionate about helping our clients navigate through, whatever it is your personal real estate, your real estate investments. Again, we're grateful to serve the community through real estate. So have a great day, have a great week and we'll see you next Monday Thinking about estate planning for your real estate.

Speaker 1:

Without a smart approach, the property you leave behind could become an unwelcome burden for your kids. Many children simply don't want to co-manage an inherited house or deal with the tenants. Fortunately, you can prevent that with the right plan. The George Real Estate Group specializes in tax-efficient strategies like 1031 exchanges and Delaware Statutory Trust to simplify inheritance and income planning. A 1031 exchange can defer your capital gain taxes now and help your kids avoid a big tax bill later. And a DST lets you continue earning rental income without landlord headache. Plus, it can be split among your children, making inheritance easier. Planning ahead is one of the kindest gifts you can give your family. Let us help you secure your legacy. Call the George Real Estate Group at 828-393-0134 today. You've worked hard to build your legacy Now let us help you protect it for your loved ones.

Speaker 2:

The George Real Estate Group has the experience of selling over 1,200 properties and serving over 1,200 families with their real estate needs in Henderson County and throughout Western North Carolina. The George Real Estate Group is located in Flat Rock, north Carolina, near Hendersonville in Henderson County. You can find them online at realestatebygregcom. The George Real Estate Group can be reached at 828-393-0134 or stop by their office at 2720 Greenville Highway, flat Rock, north Carolina. Tune in live each week on Monday mornings at 9.05 on WTZQ FM 95.3 and 1600 AM or stream online at WTZQcom.