Mon, 4 December 2017
CW 919 - Real Estate vs GOP Tax Plan vs Foreign Investment in US with Ed Mermelstein, Rheem Bell & Mermelstein
Is the home ownership rate too high? Are millennials going to enter the market and disrupt everything? To answer these questions you have to answer Jason Hartman's key question in life: compared to what? Any time you're making plans or comparing one thing to another, the question of compared to what pops up, and it's something we should continue to ask ourselves.
Is buying a rental home a smart option? Compared to what?
Should I put money toward this investment? Compared to what?
Later in the show Jason 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.
[2:45] "Compared to what" is the question you need to ask about everything, and it's especially important when it comes to foreign real estate investors in the United States
[8:24] Millennials are entering the housing market, but not in a significant percentage
[11:23] Jason's big piece of advice for people making their 5-year plan video
[14:21] David Copperfield & Jerry Seinfeld's net worths go to show you the power of media & scalability
[16:19] The list of countries with the highest & lowest GNI
Ed Mermelstein Interview:
[23:59] Will the proposed tax plan make the US real estate market more or less attractive to foreign investors?
[26:14] The typical business designation that foreign investors use
[28:49] Why some changes in deductions will effect investment in big cities like NY, LA, SF
[31:55] Which countries some of the major US markets get most of their foreign investment dollars from, and how the investors are using their properties
[35:58] Are any foreign governments buying US real estate?
[38:59] 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
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