Thanks to a tax break in FIRPTA (Foreign Investment in Real Property Tax Act), foreign investors could double down on their US real estate frenzy in 2016. How, you ask?…
Thanks to a new law signed into effect, foreign pensions can now invest up to 10% ownership of REITs (Real Estate Investment Trusts) before triggering FIRPTA taxes. This is up from the 5% ownership allowed previously.
Foreign Investment has shot up to $78.4 billion (that’s billion with a “B”) from just $4.7 billion in 2009. That was before the tax break!
This past year both Multifamily and Industrial properties were the hottest thing for foreign cash. With the new ruling, these are likely to see an even bigger boost in sales.
We will watch the markets and see where they take us. Right now, looks like 2016 could be a good year for investments.
Do you own an Apartment or Industrial building and want to know what it might be worth? Call/text me at (206) 293-1005 or Jen@HudsonCREG.com for the latest data and trends in your area.