April 19, 2010
For the past few months, it seems the bears have taken a back seat to a lot of bullishness, particularly in commercial real estate. A few months of rising prices, equity flowing everywhere, and a whole lot more buyers than sellers has made many investors feel that perhaps we’ve seen the worst of it.
Perhaps we have. But that doesn’t mean the world is fundamentally that different than it was just 6 months ago. Interest rate risk still looms, deficits, budgets, and government woes still abound, and unemployment and consumer spending continue to be a major concern. The first time home-buyer tax credit is also set to expire shortly as well.
Take the time to factor in what could happen to tax rates on dividends next year if action is not taken, and continued pressure by both local (a la Palo Alto) and federal authorities to tax rents and other forms of investment income, and you’ll realize risk never really left, it just took a short nap.
- Laugh or Cry? 4-Year Old Buys A House
- Fixing The Fundamental Problem
- Unemployment Benefits and Homebuyer Tax Credit Extended
- Tax Credits and The Law of Unintended Consequences
- Prudential’s Case for CRE