I frequently get asked how many properties one can sell, or for that matter replace (purchase), when doing a Section 1031 tax deferred exchange. You are going to love this answer–the investor can sell (relinquish) ANY number of properties and then purchase (replace) a smaller number of properties. Many investors take this path because it generally leads to the reduction of management headaches. Alternatively, that same investor can diversify their holdings by selling one or more properties and purchase numerous properties. I have seen many investors purchase a number of properties as their replacement because they wish to spread their risk over a lot properties. Another neat idea for the investor is to spread their risk over several different states or geographic regions by utilizing §1031. This can be accomplished by replacing (purchasing) properties in different geographic areas, thus avoiding holding all of their properties in areas that have substantially appreciated and where prices have reached their peak.
/Plans for Rebuilding City after Christchurch Earthquake 2011/
The Press newspaper in Christchurch reported on the morning of the 30 March 2011 that ‘A new standalone government department with wide powers has been created to manage the rebuilding of Canterbury.’ The front page news stated that Cera is to be headed up by Earthquake Recovery Minister Gerry Browlee and will have similar powers to those granted to Civil Defence in a state of emergency. The department has been set up for a period of five years. New Zealand is currently in a national state of emergency that has been extended until the 31st March 2011.
Update on Life in Christchurch after Earthquake 2011
Life in Christchurch is slowly falling into a pattern of the new normal. As of 30 March 2011, authorities were advising that all water still needed to be boiled until further notice. This is in spite of some of the water being chlorinated. Water tankers are still supplying water to a large number of areas and watering of gardens is prohibited. Estimates are that it will take two years to rebuild the sewerage system and in the meantime, thousands of homes have been supplied with a chemical toilet. Portaloos are also seen on street corners in many areas. The electricity network is still fragile and people in the eastern suburbs have been asked to use as little electricity as possible.
The northwest of Christchurch was less affected by the earthquake as it is built on rocky soil. This has meant that most of the malls and businesses on that side of town are still operating. This has added to the traffic congestion caused by the damaged roads and lack of access through the city center. People are driving across the city to buy food and basics and also to enjoy a coffee and spend some time with friends. Mall food courts have signs up reassuring customers that all water used in baking and hot drinks has been boiled for three minutes before use.
Aftershocks continue but have been quieter with only five reported between 11pm on 29 March and 2pm on the 30th March. The largest of these was a 3.3 magnitude that was located 30 kilometers south of the city. Residents have been warned that the aftershocks will continue for months if not years and several large jolts are still to be expected.
The news of a new earthquake authority, Cera, has brought hope into Christchurch as it faces a massive rebuilding process over the next five years. Residents are settling into new routines and life continues amidst the scenes of destruction and stories of hardship.