Real estate industry likely to benefit from a Trump presidency

Posted On Thu, November 10, 2016 By

Posted On Thu, November 10, 2016 By In Policy, real estate trends

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.

[Via Crains]

RELATED:

Tags : , ,

MOST RECENT ARTICLES

  • Health and high-rise living: Is higher healthier?

    Health and high-rise living: Is higher healthier?

    In 2017, new high-rise developments will continue to define the city’s skyline. There are currently more than 30 high-rise developments ...
  • MTA board members admit subway service is terrible

    MTA board members admit subway service is terrible

    On Monday, numbers released by the MTA served to confirm something we’ve all known for quite some time now: NYC ...
  • Construction update: Google’s Pier 57 expansion gets glassed

    Construction update: Google’s Pier 57 expansion gets glassed

    Pier 57 now showing some skin; Photo: CityRealty Work is moving along at the waterfront development that is rehabilitating and revitalizing ...
  • Jon Bon Jovi’s former Soho penthouse returns for $38M

    Jon Bon Jovi’s former Soho penthouse returns for $38M

    A year and a half after Austrian-American businessman and investor Gerhard Andlinger scooped up Jon Bon Jovi’s Soho penthouse, he’s put it ...
  • Art dealers’ Cobble Hill townhouse has gym, wine cellar, and city views for $6.5M

    Art dealers’ Cobble Hill townhouse has gym, wine cellar, and city views for $6.5M

    Two Manhattan gallerists, one six-story Brooklyn townhouse—you’d think it would be a match made in heaven. But the home’s current ...
  • Driving Barron Trump to school won’t leave NYC in total traffic chaos

    Driving Barron Trump to school won’t leave NYC in total traffic chaos

    It appears the Secret Service and NYPD are indeed taking measures to minimize the disruption caused by Melania and Barron staying ...
  • Map: Here’s where you can afford to live in NYC in 2018

    Map: Here’s where you can afford to live in NYC in 2018

    For New York home buyers, a lot can change in a year. A neighborhood that was considered affordable can all ...
  • A photographer’s classic Soho loft complete with furniture and art asks $10K/month

    A photographer’s classic Soho loft complete with furniture and art asks $10K/month

    The most interesting thing about Soho lofts is often the people who inhabit them; all begin as hangar-sized white spaces with ...
  • Get a free Shake Shack burger via their new app

    Get a free Shake Shack burger via their new app

    Even when all hope seems lost—there’s nothing like a free cheeseburger to raise morale. Shake Shack is celebrating the launch ...
  • Amtrak tearing down Penn Station departure board; Billy Bush lost $1.4M on his Chelsea house

    Amtrak tearing down Penn Station departure board; Billy Bush lost $1.4M on his Chelsea house

    Penn Station’s archaic-yet-iconic Amtrak departure board is officially coming down today to make way for a series of updated, smaller ...
  • De Blasio to allocate $300 million and accelerate construction of third NYC water tunnel

    De Blasio to allocate $300 million and accelerate construction of third NYC water tunnel

    City Water Tunnel No. 3, one of the largest capital projects in the city’s history; Images: NYC DEP Mayor Bill ...
  • Central Park South co-op of the late Doris Roberts lists for $3.3M

    Central Park South co-op of the late Doris Roberts lists for $3.3M

    Emmy-winning actress and animal-rights activist Doris Roberts (you probably know her best as Marie Barone from “Everybody Loves Raymond”) passed away ...

SIGN UP FOR OUR NEWSLETTERS

Thank you, your sign-up request was successful!
This email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.