SOCIAL SECURITY IN 2020
KNOWWHAT’S CHANGING
TAXES How much your benefits are taxed depends on your household income levels. For example, 50% of your benefits will be taxed if you make between $25,000–$34,000 individually or $32,000–$44,000 for married couples. If you’re above that income bracket, then 85% of your benefits will be taxable.
HAPPENINGS AT HEARTLAND If you’re in the appropriate age bracket, Social Security may play a major role in your finances. So, it’s important to know how Social Security will be changing in 2020. TRUST FUND Unless Congress takes some drastic actions in the coming months, the current excess trust fund revenue will be depleted by the year 2034. If that happens, Social Security will only be able to pay 79% of the promised benefits from ongoing payroll taxes. You may need to think about what your financial plan would be like with 21% less income. RETIREMENT AGE If you haven’t reached retirement yet, this one is important to consider. If you were born after 1959, the full retirement age is now 67 for you. You’ll still be able to start taking some benefits at age 62, but they’ll be at reduced monthly payments. COST OF LIVING Low inflation means that Social Security benefits will only see a minor cost of living increase. This year, it’s expected to be around 1.6%. It’s not major, but if you’re living off Social Security alone, every penny is important. MAXIMUM BENEFITS Those near the top of the Social Security income scale in 2019 will see an increase in their maximum payout in 2020. The maximum payout for an individual will be capped at $2,861 per month. That translates to $34,332 per year, so consider how that may impact your finances. If you’re considering investing in the heartland, now’s the time to jump into the game. We’ve seen high activity across all property categories in recent months, but two categories stand out as particularly desirable, commanding more investor interest and higher prices: small 4–6-unit apartment complexes, and large complexes of 70 units or more. Our team saw consistently high sale prices for small 4–6-unit apartments in 2019 — in some cases, they were record-breaking! We attribute the price jump to low interest rates, a large influx of owner-occupants, and the flexible financing terms offered by local banks and credit unions. In most cases, these properties sell even before they hit the market . The same is true of large 70-plus-unit complexes, which aren’t staying on the market long if they make it there at all. The investor demand for these properties is fueled by low interest rates, companies aiming to complete their acquisition targets by the end of the fourth quarter, and out-of-state investors finding the heartland an attractive place to own predictable, competitively priced apartment communities that outstrip the offerings in more urban locations.
INVESTOR DEMAND PEAKS FOR APARTMENTS ACROSS SIZE SPECTRUM
range as well. Just recently, we sold two apartment complexes (one 63 units and the other 42 units) before they made it to the market. Still, overall, properties in this size range are taking a bit longer to sell than their smaller and larger counterparts. Looking forward to 2020, Darin sees demand in all of these categories following the same upward trajectory, which means if you’re a property owner considering selling, 2020 might just be the perfect time to get the price you deserve. To keep up with the market and get the
THIS 4 UNIT RECENTLY WENT UNDER CONTRACT AT A RECORD PRICE!
THIS 300+ UNIT PROPERTY RECENTLY SOLD FOR $60,000+ PER UNIT WITH MULTIPLE BUYERS COMPETING TO PURCHASE.
first bite at opportunities to invest or own multifamily properties in 2020, email him today at darin.garman@gmail.com and ask for a spot on our Priority Investor List.
Does this mean the desirability of apartment communities with 10–60 units is dead or slow? Hardly. In fact, we’re seeing vigorous activity in that
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