Clips - Why The Kids Sell The Property
We all hear and tell stories about people selling inherited property in "our" communities. About how they should never sell, and hold on to them forever.
The reality is the majority of people aren't, haven't, and won't be in the position to inherit property. Many people don't know what comes with that responsibility.
It's not uncommon for property owners to keep rents low over time to retain long-term tenants. Their tax/cost basis allows them to do so, but once they die, the property now has a brand new tax bill based on current market value.
It may not seem like a big deal, but if the property doesn't make enough money to cover the new expense, and rent control restrictions limit an owner's ability to increase rents to cover the expense, you've essentially passed on a tax burden to the next generation and they have no other option but to sell.
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