How will the new fiscal crisis bill shape real estate investment trends in the year ahead?
Politicians finally managed to scrape together a last minute deal to prevent us from diving head first over the fiscal cliff. Some will see this new bill more like a bungee jump than a crash over the edge and others might love it. However, what is really important is how you will react to the changes as a real estate investor.
Real estate investing pros need to anticipate how the bill will alter real estate trends and position themselves to capitalize on it.
One thing is clear; taxes are going up. Taxes are going up big time for a few right now, others will feel it less and more gradually, but with increased spending everyone will feel the pinch in their pockets unless they act to minimize tax liability and increase their incomes.
This will no doubt drive more to invest in real estate as a tax shelter and to boost their investment returns and regular income, especially those in higher tax brackets. This is great for investors, it is just a case of positioning the product in the right way to appeal to the new surge in home buyers and investors.
Businesses have been given a 1 year extension for tax breaks on acquiring new property. That puts the pressure on all those with plans to expand or launch a business and even those consolidating to purchase commercial property now. This will lift property values in many ways. Ffind your angle to capitalize on it.
Finally, with the realization that all the fiscal cliff talk in the media just seems to be more hype and political positioning and that the worst has been averted there will be much more global confidence in the U.S. as a ripe destination for real estate investing. Be ready to serve more foreign buyers to reap the biggest rewards this year.