Here we are at 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. It is such a celebrated occasion that it is capitalized, New Year. It is feted around the globe wherever you go with enthusiasm, optimism, joy, and the widespread sharing of midnight kisses and hugs to recognize the New Year and all the anticipated happiness that we hope it will bring to us and our loved ones.
For some it is really the relief of letting the past go and the hope for one’s 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 right. There is great power in that thought for one will manifest what is focused on. Focus on positive changes and that is what you can expect. Such folks 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, new experience plans, 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 for these folks is one fine time.
For many it is an evening of celebration followed by a day of leisure. It is possible to watch college football all day on New Year’s Day which bodes the perennial question, “Can a husband be declared legally dead after watching 16 consecutive quarters of football?” These folks will celebrate the occasion, but it isn’t emotionally driven. It’s just another day after which they need to remember to write 2020 on their checks … if they still write checks.
The New Year starts things over for those on a calendar year basis. The tax consequences of a purchase or sale will go on the elapsed year, or the new year depending on when the transfer occurs so 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 New Year’s impacts on you 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.
Our Advice: Have a safe New Year! It is a time when people celebrate for the sake of celebrating and lose focus of the objective. Those folks can be a physical or psychological liability so steer clear. 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. You might find the desire for change, or the pleasure of knowing that you are in a good place. Either way is fine. You might make a note to contact your Agent in January and get a real estate “health check,” talk about your portfolio, its value, options, and status.
New Year is special — it follows the joyful celebration of Christmas with a definite moment in time when the future begins. It is a time everyone can appreciate. Enjoy it.
When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. email@example.com.