Now that the fiscal cliff crisis has been averted temporarily, it might be time to revisit investment strategies. There was a great deal of fear due to the unknown details of what a deal might entail, and the result has been better for real estate than most people thought. Two details that could have potentially wracked the real estate market were the capital gains tax and the mortgage interest deduction disappearing. The fiscal cliff bill passed yesterday includes no changes in the mortgage interest deduction, and the capital gains tax only increased from 15% to 20%; many feared the rate would go even higher.
People have been on the sidelines for investment properties due to uncertainty. First as to the presidential election, then the fiscal cliff and potential tax changes. We are finally at a point where these uncertainties have been assuaged and it may be time for people to dip their toes back in the market. The stock market is experiencing a relief rally today. The next few months should portend a similar comeback for real estate, now that FUD (fear, uncertainty, doubt) has dissipated.
People have been on the sidelines for investment properties due to uncertainty. First as to the presidential election, then the fiscal cliff and potential tax changes. We are finally at a point where these uncertainties have been assuaged and it may be time for people to dip their toes back in the market. The stock market is experiencing a relief rally today. The next few months should portend a similar comeback for real estate, now that FUD (fear, uncertainty, doubt) has dissipated.
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