Jerry Garrity, a broker for First Statewide Realty, a property management firm [http://www.firststatewiderealty.com] that services Sunnyvale and the rest of the Silicon Valley, says that the complexities of the tax code always create winners and losers.
"Smart investors are simply better at adjusting their portfolio from a losing portfolio to a winning one. Sometimes that means cutting loose an investment for tax purposes, but that can be an opportunity for another investor."
With the tax uncertainties of the coming 2013 political season and the so-called "fiscal cliff" looming, Garrity says many different scenarios could materialize in coming weeks as investors adjust their real estate portfolios to match their view of what will happen in Washington D.C.
"The bottom line is that savvy investors should use times like these to watch the markets for good investment opportunities that fit their investment objectives. We may see homeowners in some situations motivated to sell before capital gains tax rates go up. On the other hand, we may see a political resolution that takes capital gains tax hikes off the table."
When will investors know? Garrity says that is anyone's guess.
"Congress is not likely to see eye to eye with the President on this, so this could turn into an ugly fight. But as the fiscal cliff looms large, both parties may be brought to the table to work out a deal."
Unfortunately, by that time, it may be too late in the year to buy or sell a home before December 31.
"The best advice is to be prepared" Garrity says.
About First Statewide Realty
Jerry Garrity's First Statewide Realty is a seasoned expert in property management whose expertise has been featured in the Wall Street Journal and other publications. His Silicon Valley property management company specializes in managing single family homes, condominiums, townhouses and other investment property. Services are provided for all of Silicon Valley, including San Jose, Sunnyvale, Santa Clara, Campbell, Mountain View, Los Altos, Saratoga, Cupertino, and Los Gatos.
The firm has been in business for over 24 years, and is a member of the Santa Clara County Association of Realtors, Silicon Valley Association of Realtors, National Association of Realtors, California Association of Realtors, Tri-County Apartment Association and National Association of Residential Property Managers.
First Statewide Realty
20045 Stevens Creek Blvd.
Cupertino, CA 95014