With the national elections to be conducted this November, the real estate industry is on another roller-coaster ride of perceptions, views, and opinions. Current president and re-electionist Barack Obama and competitor Gov. Mitt Romney have opposing views on the temporary tax cuts by the then president George W. Bush.
If Obama wins, the temporary tax cuts will not be extended beyond this year. He’s firm and clear with this and constantly says so on his speeches. Romney says it the other way around. If he wins, the tax cuts will be extended.
The real estate industry is among the industries that get the biggest impact out of this election brouhaha. It is still unclear who would win the post. This puts buyers and sellers on head-ache inducing decisions on what to do with their property requirements. Sellers are doubly unsure if they can get buyers according to their time tables.
Despite this confusion, some real estate analysts see the upcoming election as a perfect opportunity to exercise buying and selling moves. Before the winning candidate is proclaimed, the tax impacts on the properties are somehow measurable. And buyers and sellers who are considering a purchase or property liquidation should already make moves at least 90 days before the election. For all we know, the usual time before deals are closed consume this time frame. After the elections, shall we be able to see if the impacts will be altered or will remain the same for at least a year.
Residential real estate properties are foreseen to get high on buys and sells, specifically due to the impact of summer season, migration, and the upcoming Yuletide season. Yet, properties such as offices are predicted not to experience the same fate because businesses are also affected by the election activities – before, during, and after. It is also important to consider that many businesses have their own candidates to support.
The tax cut is only a small factor that influences buyers and sellers to arrive at a final decision regarding the property needed for purchase or the property up for sale. As small as it may seem, it is still a variable that needs to be watched closely because it can make or break a decision. Along with this variable is the uncertainty of who will win the elections.
In spite of the proclamation of Obama’s takeover of the presidency at a time when inflation, debt, and unemployment are primary problems – the American nation has collected a quite different sentiment. Taking Romney in to the scenario makes majority of the Americans give unusual reactions to Obama’s leadership. It is still unclear who will win the prestigious seat of American power.
The impact of the next president to the real estate industry may be ironic in a deeper perspective. Buyers and sellers, as well as agents and brokers would be more conscious on how tax cuts will affect their decisions and their businesses more than who will grab the presidency. But certainly, the stands of the presidentiables on the tax cuts are worth-waiting until the proclamation of the winning name. Will his stand remain the same? Will he be influenced by his party? Will he think of the country first?
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