A new fiscal deal has been struck to avoid the worst fallout from going over the cliff but how will it affect Connecticut real estate?
There seem to be pros and cons for everyone from the new fiscal crisis bill, though the news of a deal definitely appears to be a far better outcome than many feared.
What many in the northeast and the real estate industry likely see as the biggest news are the hundreds of billions of dollars in new taxes for those earning $450,000 or more a year. This will certainly create a need for many real estate investors and real estate agents to revisit their tax strategies and planning to avoid feeling the pinch in their wallets.
However, on the bright side for those in the business is that buying and investing in Connecticut real estate remains one of the best ways to find shelter from taxes, which could drive up CT home sales during 2013. Of course many will also have no better option than to invest in real estate in order to boost their investment returns and incomes as they pay out more in taxes elsewhere.
Another boost for Connecticut real estate in 2013 is likely to come from the 1 year extension given to tax breaks for businesses acquiring new property. This makes this the year for companies to grab new digs and expand for the maximum tax benefits. This won’t just mean a lift for local commercial property but could also provide investors and CT home owners new opportunities to cash in on residential properties they are holding.
However, perhaps one of the worst side effects of the current fiscal mayhem was the government sidelining the vote on help for hurricane Sandy victims, which leaves many still out in the cold. Perhaps it will be down to local real estate investors to do more to provide direct help…
