After the 2020 presidential election, there seems to have been a sort of an increase in real estate activity in big cities like NYC or Chicago.
the number of deals that were new and presented in Manhattan had increased by about 6% since last year. This then presented a newfound confidence in the city districts, but the fact still remained that among many real estate brokers and agents, they wondered about the impact a Biden presidency can make when it came down to the political atmosphere.
What did seem like many months, those that were involved in the real estate business were rather nervous in seeing what this Biden presidency will do when it came to tax policies and federal funding. Many of them did go on to believe that with this administration, things would go back to a normal of sorts, resulting in more market confidence in the U.S.
did state that many buyers and sellers in areas such as the big cities would see that there would be more urban development and recovery during a Biden administration. What he found was that with hopes of vaccine distribution under this administration, there would be more movement within the bigger cities.
What the Biden administration has done so far is the prospect of removing the SALT cap, which were limitations on deductions in people’s home mortgage interests and their overall local as well as state, taxes.
It is of common knowledge that property taxes can be rather high in certain locales such as suburban locations, and thus, with a repeal to the SALT cap, there would be a relocation benefit presented to many.
There is also the proposal of a 15k tax credit that would benefit many homebuyers as it would make it easier for them to purchase homes without the need of increased prices, inventory, and other impediments that are financial.
which the CEO of Okada & Co., Chris Okada disagrees with as it would be cost prohibitive when it comes to the bigger cities. This is most likely due to the prices of the land, its development, and construction as well as maintenance as it could cause some complications in the near future.
Lastly, Biden hopes to provide more funding to the cities and districts that are more Democratic compared to Turmp’s lack of funding for those cities. Since these cities hit the most during the pandemic, Biden hopes to push more stimulus money back into their wallets so they can sustain themselves easily.
There is a lot to understand and dissect when it comes to this Biden presidency as there could be both challenges and benefits within the real estate market. For many, they hope their time is now while others brace themselves for the problems that may face when these proposals are enacted into federal law.
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