Jim Valentine on Real Estate
It’s that time of year when we collectively take a breath at midnight on Dec. 31 and find ourselves in a New Year a second later on Jan. 1. Such a celebrated occasion it is that it is capitalized, New Year. It is feted around the globe with enthusiasm, optimism, joy, and the widespread sharing of midnight kisses and hugs to recognize the New Year and all the anticipated happiness that it’s hoped it will bring to us and our loved ones.
Some experience the relief of letting the past go and the hope for the future. Whether it be relationship matters, tax consequences, business successes, family achievements, etc., the New Year affords the opportunity for a psychological reset. At the stroke of midnight everything changes and the world “will be all right.” There is great power in that thought for you manifest what you focus on. Focus on positive changes and that is what you can expect. For that, embrace the New Year.
Others look at it as a time to start a good thing over in order to repeat or expand on the goodness experienced in the elapsing year. A time to set new achievement goals, plan for new experiences, and enhance family, friend and business relationships. These folks celebrate the wonderful year they just had while anticipating an equal or greater annual life experience with that which is upon them.
New Year starts things over on a calendar year basis. The tax consequences of a real estate purchase or sale apply on the elapsed year, or the new year, depending on when the transfer occurs. Plan accordingly. For instance, if you are retiring next year and will have a reduction in income it makes sense to move a taxable sale to next year. Conversely, if you anticipate large income next year then close this year if possible. Income tax consequences can be one of the biggest impacts of the New Year if you don’t plan carefully.
Real property doesn’t itself change with the New Year, but the benefits of ownership can. Some years legislation takes place on Jan. 1 which can impact real estate you own or your use of the property, positively or negatively. Other legislative or political changes can change economies that can then have an impact on real estate. Jobs lost, or gained, interest rate movement, or stability, are a few things that can trigger real estate decisions. It isn’t always the New Year itself that causes it, rather someone with a New Year attitude for change that drives it.
This last year in real estate has been an odd year in several ways. Interest rates were sputtering then accelerated in their rise through the middle of the year. Desire and demand were good, but the increase then pause on interest rates caused confusion. Decisions to buy and sell in the third and fourth quarters of the year were like working a 3-D puzzle. Interest rates have started to decline as we near the year’s end triggering positive media pontificating for the first time in quite a while. We will know how it works out … in 2024. Prices are all over the place with no exact pattern to utilize in determining price. Willing buyer/willing seller rules the day.
Have a safe New Year! Some folks celebrate for the sake of celebrating. Those folks can be a physical or psychological liability to steer clear of. It is a time of transition so take some time to reflect on your life, your real estate wants and needs, and how things are working for you. Time for change, or stay the course? Either way is fine. Contact your Agent in January and get a real estate “health check” about your holding(s).
New Year is special following the celebration of Christmas with a definite moment in time when the future begins.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Gold Carson Valley, 775-781-3704. dpwtigers@hotmail.com.