LIfe is on the Move in a COVID World

Before you head out for the weekend I want to share a few wins that we've seen this week. In a year like 2020 we need to take every win we can get. And when they come be just a little more thankful. Overall, as we look at events that have taken place since COVID first came on the scene there have been some innovative changes to life.

Just a few months ago the Real Estate World was looking quite grim under the lockdowns and small business fears surrounding this horrific pandemic.

But since them a "New" norm has taken root the Real Estate Market is doing new things to stay relevant. Right now, many Realtors are even looking at ways to strengthen their net revenues a mid the new found success. Because the further we move through the summer we are finding that Real Estate Professionals are busier than ever.

So what was our world like this week?

This week we witnessed:

• Trump signed another PPP extension over the 4th of July weekend pushing the deadline to 8/8/2020. With the new extension, most lenders will see a rush in new applications and the funds may run out way before 8/8/2020. According to CNN, "House lawmakers unanimously passed the extension less than a day after the program expired, and PPP will now remain open to applications through August 8." But I wouldn't hold out or wait on this one if you're in need of funds. This may very well be the last round of extensions and the 134 Billion will likely go quickly as banks scramble to help small businesses apply to the program.
• Home sales are still soaring, especially in suburban areas. "The coronavirus pandemic has pushed city dwellers and potential homebuyers to flee dense areas like New York and parts of California for suburban locations as Americans spend more time at home than before," says Ryan Schneider, chief executive of Realogy Holdings, parent company of Century 21, who spoke candidly about it on CNBC.
• Mortgage demands are up 33% as the buying momentum along with record low rates continue to fuel the market. Nasdaq reported that "The latest weekly mortgage application report saw applications to purchase a home rose 5% and were up 33% YoY. According to the Mortgage Bankers Association, mortgage rates declining to a record low has helped push the average purchase loan size to a new high of $365,700 with strong buyer demand and sales limited only by the record low number of homes for sale."
• The Dow Jones is up. As I write this we are up 350 points. What is leading this optimism? According to MarketWatch Gilead reported that its antiviral drug remdesivir showed that it reduced the risk of death for coronavirus patients by 62% compared with standard care alone.
• The Tax deadline is still set for July 15th along with Q1 and Q2 estimates, nothing changes here and if you've been dragging your feet you'd better take steps quickly to get the right tax help, or you may regret your Tax Bill.

So, all and all the Summer economy is looking much brighter than we were expecting in this COVID age. As businesses of all sizes begin to innovate and pivot to stay relevant we're learning that employees can successfully work from home. We're finding that you can sell real estate even if we have to do it differently. We know eventually as with all pandemics that our society will once again emerge.

All of this is excellent news. Though, the tax deadline may not be if you failed to talk to a Tax Expert to make sure you're on track. Because as we always remind our small business friends and especially our Real Estate Clients; tax planning is more than just tax prep. In fact tax prep IS NOT tax planning. 

And even though the COVID-19 hasn't backed down, our world is figuring out how to go on despite the struggle. So if you're planning to end this year majorly successful then you probably should start scrutinizing your business plans a little closer. Maybe begin the conversations and start taking control of your taxes.

Because it looks like Real Estate is going to be a big deal for meany Real Estate Brokers and Agents in 2020. Before the year ends it will be crucial to figure out how to maximize your net revenues and this can indeed be achieved through proper tax planning.

Enjoy your weekend. I truly hope you find this article helpful as we end the week and climb into the weekend. If you have any questions or comments feel free to reach out to me here on LinkedIn and make sure to check us out at The Tax Planning Pros.