Posted on 04/17/2010 7:42:07 AM PDT by TigerLikesRooster
U.S. government mulls luring foreign property owners
Ilaina Jonas - Analysis
NEW YORK
Fri Apr 16, 2010 4:36pm EDT
NEW YORK (Reuters) - Tax breaks may not be enough of a sweetener to bring foreign buyers back into the flailing U.S. commercial real estate market, where falling rents, rising vacancies, a scarcity of debt financing and lack of property for sale have acted as deterrents.
Congress is considering a move to lower or eliminate U.S. taxes currently imposed on foreign investors of U.S. commercial real estate, where the number of sales has fallen off a cliff over the past two years.
The Real Estate Revitalization Act of 2010 is designed to stir demand by foreigners and in turn lift prices and encourage even more buying by alleviating the U.S. tax burden imposed upon foreign sellers. The number of commercial property deals fell by 55 percent in 2009 after diving 62 percent the previous year.
Yet many current owners are hanging on to their property despite values that are often less than the mortgages because lenders are extending the loans rather than take the loss from a foreclosure.
But if lawmakers hope that rejigging the tax laws for foreign sellers will suffice to kick-start the U.S. commercial property market, they may be in for a letdown.
Both foreign and U.S. investors are keeping a massive amount of money parked on the sidelines. They are spooked not by taxes but by falling rents, rising vacancies and a lack of debt financing. There is also a dearth of well-leased, financially stable office, retail, hotel apartment or warehouse buildings for sale.
The Real Estate Revitalization Act of 2010 seeks to unwind some of the provisions under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA),
(Excerpt) Read more at reuters.com ...
P!
All the while raising taxes and creating all kinds of new taxes for American Citizens.
Don't drill, don't mine coal so muzzies can use their oil money to buy American real estate.
But what do you expect from a muzzie prez?
Look for commercial property, malls, apartment rentals and such to be ruled by Sharia Law...Ladies get your burkas now while still cheap...you will need the to go Victoria Secrets.
no
This is a very bad idea from a corrupt, demented, and myopic Congress. They do not care what they do to future generations in their selfish and short-sighted lawmaking.
ChiComs
Saudis, Iranians, PA, Turks, etc.
Russians
Vietnamese (North especially)
Zimbabweans trying to get out, etc.
Venezuelans, etc.
You know, the Japanese tried to buy Pebble Beach & Make it private. However, all Americans own our coastlines (for now) between the tides. They lost a boatload on that move.
They raise our taxes and will give foreigners a tax break??
They really are selling out America.
Just trying anything to prop up a weak commercial real estate market which threatens to collapse much as the housing market did.
Shortsighted and stupid, like much of what Congress has done for the past few decades.
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