{"id":2113,"date":"2018-11-20T21:10:43","date_gmt":"2018-11-20T21:10:43","guid":{"rendered":"https:\/\/enrichedrealestate.com\/blog\/?p=2113"},"modified":"2018-11-20T21:10:43","modified_gmt":"2018-11-20T21:10:43","slug":"realestatecycles","status":"publish","type":"post","link":"https:\/\/enrichedrealestate.com\/blog\/2018\/11\/20\/realestatecycles\/","title":{"rendered":"Real Estate Cycles- Why They Occur"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">You might have heard of the phrase, \u201creal estate cycles.\u201d \u00a0But understanding <\/span><b>WHY<\/b><span style=\"font-weight: 400;\"> they occur, what influences value change and what variables are important to watch may help investors with the ability to gauge the anticipated future performance of their market and their investment.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Property Tax Consultation and Representation<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Millions of property tax protests, both by homeowners and industry specialists, occur every single year. \u00a0However, most cant process more than a few thousand clients protests.\u00a0 Information processed through computer systems can give property tax consulting firms the necessary tools to be successful. \u00a0But only a handful of companies have these resources. <\/span><\/p>\n<ul>\n<li>\n<h3><b>Appraisals<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><b><\/b><span style=\"font-weight: 400;\">Notoriously difficult appraisals occur annually and are prepared by qualified professionals. \u00a0The profession is regulated by the U.S. Government through laws mandating state licensing and continued education.\u00a0 Intended to provide some transparency and act as an in between among lenders and borrowers, these regulations are a huge help.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><strong>Debt and Liens<\/strong><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The residential lending market is pegged in about $17,000,000,000,000, more than the US Treasury. The commercial lending market is reported to be around $11,000,000,000,000. \u00a0Mortgage loans and other factors affect the state of real estate.\u00a0 The loan they people get to purchase real estate becomes a mortgage instrument that they are required to pay off. \u00a0Second mortgages occur when the equity in the real estate is pledged for additional debt.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Federal Tax Reduction Department<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For investment property owners, cost segregation is a vehicle for accelerating federal tax depreciation on improved property, providing for higher depreciation offsets sooner, like three, five and seven years. \u00a0Cost segregation is an IRS-approved method for calculation of property components, segregating each building components correct depreciation life, including short life classifications. Accelerating (shorter) depreciation lowers or defers taxable income. \u00a0Upon an investment property purchase, buyers should look to federal tax reduction companies to prepare these reports, which are then provided to accountants to \u201cbuild into\u201d tax returns.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Market Research Department<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Researching local property rental and occupancy statistics can be found on the Internet access of various real estate survey companies databases of residential, apartment, office, retail, and industrial property characteristics. \u00a0Subscribers have access to rent data, sale comps, and mortgages (maturing dates can be searched), tenant data and market reports. However, these subscriptions can cost thousands of dollars per month. Even the largest real estate firms use multiple search engines to get the totality of the data available in each market. \u00a0The industry is moving to data collectors where all public records become \u201cenriched\u201d through industry professionals use of the data and big data\u2019s ability to capture and store those \u201cin the field\u201d enhancements back into big databases. Appraiser\u2019s field inspections while preparing appraisal reports, crowdsourcing sales and rent comparables from lenders and brokers input allow the industry some transparency. \u00a0However, nobody knows a property like an owner and once the big database collects the body of knowledge, real estate knowledge will then be truly transparent. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You might have heard of the phrase, \u201creal estate cycles.\u201d \u00a0But understanding WHY they occur,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-2113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"_links":{"self":[{"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/posts\/2113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/comments?post=2113"}],"version-history":[{"count":0,"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/posts\/2113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/media\/2908"}],"wp:attachment":[{"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/media?parent=2113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/categories?post=2113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enrichedrealestate.com\/blog\/wp-json\/wp\/v2\/tags?post=2113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}