Jason Hartman talks with Ed Mermelstein, founding partner of Rheem Bell & Mermelstein LLP, about what the GOP tax plan will likely do to foreign investment in US real estate. Ed describes how foreign investors are CURRENTLY investing in the US, and whether this plan will make the money flow in to the country or go running away to other countries. This impact will have especially large effects on big name markets like New York, San Francisco, and Los Angeles.
[1:43] Will the proposed tax plan make the US real estate market more or less attractive to foreign investors?
[3:58] The typical business designation that foreign investors use
[6:33] Why some changes in deductions will effect investment in big cities like NY, LA, SF
[9:39] Which countries some of the major US markets get most of their foreign investment dollars from, and how the investors are using their properties
[13:42] Are any foreign governments buying US real estate?
[16:44] The US is in a sweet spot where European and Asian investors will invest, but it doesn’t go overboard because of logistics like time differences and distance
“If fewer people wanted to own homes it will be better for the economy, and it will be better for investors.”
Foreign investment tends to sometimes make the news in a negative manner, but we should also consider the benefits of foreign investment in the United States