The luxury real estate market is bracing for potential changes under a Donald Trump or Kamala Harris administration. Industry experts are analyzing campaign promises and policy proposals to assess their impact on luxury real estate and wealthy investors.
Despite differences in their overall policy approaches, both candidates have expressed an interest in addressing housing affordability and supply issues. However, opinions differ on its methodology and potential impact on the luxury goods market.
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President Trump’s proposed tariffs on imports, particularly a possible 60% tax on Chinese products, could have far-reaching implications, according to a report published by Mansion Global. “Further inflation will have an impact on financial markets,” said Jonathan Miller of real estate appraisal firm Miller Samuel. Miller said President Trump’s tariffs are “bad for housing” overall.
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On the tax front, President Trump’s stance on caps on state and local tax (SALT) deductions could benefit luxury homeowners. Ralph McLaughlin, senior economist at Realtor.com, said removing the $10,000 salt deduction cap “would benefit existing high-income earners and owners of luxury properties.” That may generate more interest. ”
Meanwhile, Harris’ tax plan could create headwinds for the luxury goods market. His plan to raise capital gains tax to 28% and an additional 5% for high-income earners could impact real estate sales. Housing journalist Lance Lambert said, “Many ordinary people won’t be affected, but wealthy people who own expensive homes will be affected.” Lambert suggested this could reduce liquidity in the luxury real estate market and impact the profits of luxury real estate agents.
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Both candidates have expressed interest in opening up federal land for housing development. The overall housing shortage may ease, but the impact on luxury real estate is unclear. Without strict guidelines, McLaughlin said, “home builders could flock to more beautiful and desirable locations, such as near national parks, to create a more premium product.”
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The report said Harris’ support for the Stop Predatory Investment Act, which would eliminate tax breaks for large corporate investors in single-family rental properties, also raises concerns. “If you bring these people to their knees, the supply of multifamily housing could be dramatically affected,” said Jason Katz, a private wealth advisor at UBS.
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Beth Friedman, CEO of Brown Harris Stevens, pointed to the potential impact of political rhetoric on market sentiment. Referring to President Trump’s past statements about specific cities, he said, “If your argument is, ‘This is not safe, this is crime, this is dirty, this is not a good place to live.’ “It’s a deterrent for people who might try to do that,” she said. Buy here. ”
Despite the uncertainty surrounding election promises and their eventual implementation, wealthy investors appear cautiously optimistic. According to UBS’s September Investor Watch report, 84% of investors surveyed believe the economy is the most important issue in the election, and 51% say Trump is their main economic concern. I believe that I am better able to cope. However, 57% are leaning toward voting for Harris.
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It is clear that both candidates’ approaches could have significant and different impacts as the luxury real estate market navigates these potential policy shifts. Whether through tariffs, taxes, or land use policy, the next four years promise to reshape the landscape for luxury real estate investors and developers.
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This article: Trump Tariffs vs. Harris Tax: Which Will Hit Luxury Real Estate Harder? Experts Weigh In originally appeared on Benzinga.com
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