Dallas, TX (PRWEB) November 23, 2012
REMI offered its observations on information from Dallas News that the end-of-year rush from investors and real estate professionals is more intense than usual, mostly in response to the possible “fiscal cliff” that would change capital gains and property tax rates. REMI believes this is bad news for the market in the long term, mostly due to possible stagnancy in 2013; but in the short term, REMI supports the decisions of real estate investors to finalize as many deals at current capital gains rates.
Many real estate professionals across the country, from Dallas to Chicago, are pushing to close impending deals before the end of 2012. Many real estate agents have moved closing dates for existing deals closer than usual, to ensure that the deals are closed prior to the beginning of the new year. The end of the calendar year usually represents a busy time for real estate professionals; but some experts believe that this year is particularly busy because of tax changes coming at the end of 2012. On January 1, many federal tax rates will change, regardless of whether Congress acts to prevent the implementation of the “fiscal cliff,” across-the-board tax increases and spending cuts designed to reduce the national deficit.
While the impending fiscal cliff is driving a great deal of activity and anxiety in the real estate online marketing sector, most real estate professionals agree that the increase in end-of-year activity is understandable without it. The possibility of the fiscal cliff is, for many investors, immaterial; many believe that regardless of what Congress can or cannot accomplish, they’re better off finalizing deals at current tax rates in case the Obama administration raises capital gains tax once the new Congress takes office.
This unease is having implications for many different, real-estate related industries; Chicago Title Insurance reports that they are seeing an influx of end-of-year deals waiting for closing. Corporate entities are moving their dividend payments to the final days and hours of 2012 so that shareholders are taxed for those earnings at current rates.
REMI shares concerns with commercial broker Pat Patman, who is concerned that deals will be rushed to completion before the end of 2012. A sloppy deal constructed to make the tax-year deadline could cost the seller or the buyer in the long term. However, the influx in closing deals will also likely have a positive effect on November and December’s housing numbers, and the good news will likely spur further recovery and building of the housing market in the new year.
The Real Estate Marketing Insider released its comments about news that real estate deals were being hurried to close before the end of 2012, when some real estate experts are predicting a capital gains tax increase. Especially motivating for real estate is the possibility of the “fiscal cliff,” a Congressional deal in place to slash spending and raise taxes across the board unless Congress can agree on a balanced budget deal.
About the Real Estate Marketing Insider: Based in La Jolla, CA, REMI is an online journal for real estate professionals. REMI specializes in breaking news, hot tips for marketers and trend analysis.