Ok people, I need your help!....
This afternoon, I must sit down and write the "Letter from the Editor" for one of our luxury real estate magazines that provides our magazine's opinion on the current and future real estate market.
I'm fairly confident that the stock market will not skyrocket today. Obama has made it clear that he'll increase capital gains taxes and tax big corporations more. That means lower returns for investors. Personally I am not too excited about investing anymore of my hard earned money in Wall Street right now.
Regarding real estate, I have two thoughts....short term and long term. In the short term, we might see a spike in activity as people try to sell off their real estate holdings in order to cash in before any new legislation about higher capital gains taxes kick in sometime during Obama's first year in office. In the long term, I see a potential "buy and hold" scenario shaping up. Real estate investments over the long run are good investments...agreed? Will people buy now, with the purpose of holding for the next 4 to 8 years on the hopes that the Republicans can retake the White House in 2012 or 2016 and return capital gains back to previous levels?
Please share your thoughts...thanks
Personally I think that the people that have been holding out on the sidelines will come out and buy now that they believe there will be a change. I think as a whole people in the area that I'm in will feel a little bit more secure now that the election is finally over (but I'm in DC).
I have a second home for sale and I know that I do not want to pay 38 percent capitol gains. I will
be rethinking what to do. It will take a while for people to figure out just what his new agenda will
be. I think we will see some activity early on but then not so much.
Whatever change this election brings,,,whatever optimism it instills in real estate or the American public in general,...it has to be a welcome change from the status quo...as a part of the media voice you can help us affect positive change,,,and that would be a very good thing !
Nothing will change for quite some time. Now that the dems own the entire country, it'll be interesting to see how far this socialism takes us. Can it inspire a real estate market?
Any switch in policy will, I believe, help energize the markets...albeit after a period of "settling in". I am hopeful the capital gains changes will not be so dramatic as to squelch investor confidence. It all remains to be seen...