The city’s real estate industry isn’t too worried about a Donald Trump presidency. Real estate insiders feel that the man whose family’s fortune was made in the industry and padded by its favorable tax breaks, foreign investments and still-rising market will be unlikely to bite the hand that has fed it so well, Crains reports.
Real estate executives are confident that Trump, who was continually criticized for making frequent use of tax loopholes to avoid paying federal taxes would not likely be a threat to tax code items like 1031 tax-free exchanges, which allow landlords to sell profitable property without paying capital gains taxes if proceeds are used for similar real estate investments, or carried interest, the profit-share that investment managers charge their investors on successful investments (even though he publicly opposed the latter). A source told Crains that loopholes like these are “the underlying bedrock of the real estate industry and a Trump presidency is a positive thing in terms of preserving them.”
Jonathan Miller, head of appraisal firm Miller Samuel, thinks interest rates are going to remain low “for a while at least,” though he noted that long periods of low interest rates aren’t necessarily good for the economy overall. Another concern, a relaxation of the the Dodd-Frank Act, which reigned in capital requirements for banks, would likely not free up lending for new residential projects which are already slowing due to oversupply concerns.
Less likely to benefit from a Trump White House would be the city’s public housing, which is the country’s biggest recipient of rent vouchers and already struggling due to diminished federal capital funds.
“While programs like the low income housing tax credit and Section 8 vouchers were created as bipartisan initiatives, the Republican policy platform launched this year didn’t address affordable housing at all,” said Rachel Fee, executive director of the nonprofit New York Housing Conference.
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