Giving real estate can have a great impact for all those involved. So what are some of the best ways to gift, donate and transfer property today?
There are many reasons to give the gift of real estate. Real estate is expected to be an incredibly hot gift item as we move into the Black Friday sales spree and end of year holidays. Gifting homes, condos and land can also be a popular way of transferring wealth and ensuring both heirs and legacy philanthropic goals are taken care of. It can have an immensely positive impact on charitable causes. Perhaps even more importantly, those giving it can also reap a variety great rewards in the process.
1. Selling Property Below Value
While the U.S. real estate market has been rebounding incredibly well, there are still a massive amount of distressed properties on the market. Some still haven’t seen values recover, as billions of dollars has become obsolete. Some sellers are taking advantage of tax breaks in selling these properties for whatever they can fetch, and then taking the tax deductions. It’s just like giving to Goodwill, just on a grander scale. This may be a great way for many to exit legacy properties, settle IRS debts and get a fresh start.
2. Land Leases to Nonprofits
Long term land leases are also an option. Done right, it could potentially have tax benefits, with lower transactional costs, and make a big difference for local, in need groups and outreach programs.
3. Donate Affordable Housing
Affordable housing is in critical need. Many individuals and families have been affected by the housing crisis. While the U.S. real estate market and economy is improving, many are being completely priced out of housing. Strict landlords are even making it difficult to rent without an awesome profile. This is true, even in the hottest job markets like Austin, San Francisco, New York and Miami. Consider that Miami is now simultaneously considered both one of the most wealthy and poorest cities in the country. Many house flippers could find great win-wins in providing temporary housing in exchange for work fixing properties up. Or how about reserving one unit in a multifamily complex for affordable housing?
4. Community Buildings
How about donating property or buildings for community use. They could go a long way to building up the local community, reducing crime, increasing prosperity in the local economy, and elevating both local property values and lifestyle. This could be a place for learning, physical fitness, a launch pad for small business, or even a resource for getting families back on their feet.
5. Parks and ‘Green Areas’
Parks and ‘green’ spaces can have big benefits for all. They can improve community appeal, lifestyle, and the futures of local children, can create more environmentally friendly cities, and even preserve special spaces and views for all. This not only benefits the community, but also nearby homes and businesses which can benefit from preserved and growing property values, and not have to worry about them declining with new obstructions or pollution.
6. Learning Centers
Many of the top minds in the world have recently been coming together to work on education projects. They recognize education and learning as one of the most significant ways that they can have an impact now, and for the future. Real estate can be critical to this. These organizations need space to manufacture affordable tablets for children, offices, and educators overseas need green schools and power to fuel their missions. Or perhaps setting up a real estate school is the best move.
