ObamaCare

A side road through a political mine field -

Today is a historic day because the Supreme Court released its opinion that ObamaCare is constitutional.   Honestly I have mixed emotions about this.  I am somewhat taken aback that the Supreme Court has ruled that the federal government has the right to require us to purchase something.   While you might argue that this was a necessity to get healthcare under control, the fact is that this precedent has now been set and one has to wonder what else the government can now require us to do.

I am already hearing outcries that since the Supreme Court has ruled it constitutional, that it must be repealed.   Perhaps so.  As one friend opined, just because a law is constitutional, does not necessarily mean that it is a good law.   But, suppose the law is repealed.   What would it then be replaced with?   Given the decision of the Supreme Court, it would seem to me that there is a more prudent way to proceed.

First of all, I think all of the arguments regarding the constitutionality of the law should now stop.  We have a decision from our Supreme Court and accordingly, we should recognize its ruling and accept it.   That is the way our government is designed.   It is no more acceptable to show contempt for the US Supreme Court, than it is to show contempt for Congress or contempt for the Office of President.  Like it or not, ObamaCare is constitutional.

Secondly, since it is constitutional, I think that we (all of us) should examine what is acceptable to us all and agree to accept it.   Then let's work on the parts that are objectionable and find reasonable compromises.    In my humble opinion, we will end up with a better law by this method than by having alternating parties in power completely starting from scratch every few years.  

Just my opinion.  

Speaking of opinions, if you need some advice regarding real estate, give me a call.  I am a licensed real estate broker in Kentucky and Indiana and I specialize in Commercial Real Estate.   I works with Buyers, Sellers, Landlords, Tenants and Investors.  I handle Office, Industrial, Land, Retail and Investment properties.  Heck I can even set you up with a residential realtor.  Anyway, I would love to help. 

Thanks for reading and have a great day!

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: 502-379-6005
cel: 502-905-5274
dmccoy@ccre.biz

Another Commercial Real EstateTax Trick

Seems like there is always more to learn.  I attended a conference on Monday and learned a new accounting trick for commercial real estate.   There is a procedure known a Cost Segregation which can allow you to reallocate some of the cost of the building in a way that can allow you to accelerate the depreciation.

Actually this trick has been around for a while but it is not widely known.   It is the result of a decision regarding HCA from I believe 1997.     The IRS then clarified the decision with a ruling in 2004 that specified what was necessary and acceptable to make these determinations.    Until this time, it was only practical for very expensive real estate transactions.  

Bottom line here is that this can lead to big tax savings.   

If you want to know more about Cost Segregation or other Commercial Real Estate issues, give me a call.   I specialize in Commercial Real Estate and handle Office, Industrial, Retail, Land and Investment properties.   I work with Landlords, Tenants, Buyers, Sellers and Investors.    

Have a great day!

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

dmccoy@ccre.biz
Ofc: (502) 379-6005
Cel: (502) 905-5274

Forecasting Commercial Real Estate - Watching the Economy

Of late, it would seem that we have a case of market schizophrenia.    On one hand, these last few weeks I have noticed that the calls have been down again and the deals that I have been working on have slowed considerably.    Clients that were in a big hurry to find new space have been much less aggressive and have delayed their deadlines by weeks or months.  

On the other hand, I have been working with some clients looking for some property to buy in a certain area of town and we have been having a difficult time finding something for them.   One property sold with multiple offers on the table and prices in that area are up considerably for the first time in years.  

At this point, I am guessing that everyone is again looking to the economy.   With extremely disappointing economic news released last Friday, the stock markets took their biggest loss of the year.   I would say that at least as far as commercial real estate goes, the most significant issue was jobs.    Businesses with fewer people do not need as much space, whether that is for office, industrial or retail use.

With some many people and businesses having gotten burned in this recession, it is understandable that people would want to be cautious.    Still, we have seen better market activity this year than in the last 4 years, so hopefully, businesses will be able to take it in stride. 

Have a great day, everyone.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc: 502-379-6005
cel: 502-905-5274
e-mail: DMcCoy@ccre.biz

If you would like some help with real estate, give me a call.  I am a licensed real estate broker in Kentucky and Indiana and I specialize in Commercial Real Estate.    I handle Office, Industrial, Retail, Investment and Land.   I work with Buyers, Sellers, Landlords, Tenants and Investors.  Heck I can even set you up with a Residential specialist if you need one.   Give me a call.  I would love to help.