I will like to know how you guys think his administration will affect Real Estate and Investors. I have listened to diverse opinion on this from folks that are not investing in Real Estate but I will like to hear from Investors and Real Estate Professionals. As a Real Estate Agent and Investor from Houston Texas, I have received calls from clients seating on the fence to see who win the election. How will this affect the General Buying and Selling of Real Estate? Do you think Joe Bidden will save foreclosures in 2021? Do you see any big changes in the next few months?Should New and Experience Investors buy if the number works of wait for few months to see how his policies will affect Real Estate? Please support your opinion with facts if possible. Appreciate your meaningful contributions. Thank you

Focus on deal flow and your criteria. Everything else is noise.

Increased cap. gains tax and higher taxes on all other aspects of our lives. And no, it won't be just on those making over $400K.

To the level that the vast majority of us operate, you will not see any real change. Biden (just one 'n') has a lot more on his plate than to worry about our segment of real estate. To be fair, I cannot think of any modern President who had a profound difference on real estate investing. So Capital Gains rate goes up a little or down a little or perhaps lending tightens or loosens a bit....so what? Will that make anyone say, "I'm never investing again!"? No. Keep doing what you're doing and don't sweat it.

The real action is in the Senate. Assuming Tillis wins in North Carolina, the Republicans will need to win one of the Georgia run-offs (Perdue or Loeffler) in January to control the Senate. If they achieve control, you will likely see few if any changes affecting real estate investors for at least the next two years.

Biden HAS announced that he is going to end the 1031 exchange and the basis step up for inheritances. Changes to those tax laws will have profound impacts on many real estate investors as it will kill deal flow. A lot depends on Georgia.

I doubt it will be different than with Obama. The biggest problem regardless of who is in charge will be covid.

@Wale Lawal I think the Democrat’s self stated goal of printing as much money as possible will do what we have already seen - increase the value of assets.

Think about it logically. The 1031 is an exchange to larger properties. If you take away the benefit for people with larger properties to do an exchange, it ripples down to smaller properties. The person with a 60 unit chooses not to sell, so the person with a 10 unit has no properties to buy. The person with 10 unit properties holds, so the investor with duplex and quads has nobody to buy from. Personally I think there are far worse things in the Biden tax plan than this. The corporate tax increase will affect most every American. Everyone in this country either works at corporations, buys from corporations or invests in corporations through their retirement accounts. If a corporation is faced with tax increases they have three options: 1. Take lower margin, which affects company value, stock price. 2. Increase prices, which affects consumers. 3. Decrease expenses, which the number one expense for companies is employees, which means layoffs.

Will most likely bring back state and local tax deductions (SALT, property tax deductions) that were taken away

How Will Joe Biden as US President Affect Real Estate

Henry Lazerow

Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes

5y

1031 are somewhat of a BS tax policy. I personally think they should be removed and taxes should be paid upon sale of property. They also are something that does not affect 99.9% of the real estate market and are done primarily by larger scale investors. With or without 1031 people will still be making big money real estate investing. You may see slightly less turnover of larger assets which if anything will just raise prices in that sector due to reducing supply on the market.

1 Reply

Wale LawalBusiness Member

OP

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

5y

Originally posted by @Henry Lazerow:

More printing of money = inflation/increase value of property and increase average rents. Some say higher taxes but I doubt much of that even passes in IL we shot down the "fair tax" pretty quick. Thankfully we have a two party system that balances itself out and the president does not solely call the shots.

Smart contribution!

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Steve Morris

Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes

5y

Originally posted by @Henry Lazerow:

They also are something that does not affect 99.9% of the real estate market and are done primarily by larger scale investors.

OK, do you even actually broker investment property? I do apartments, regardless the size 95% want to do 1031s.

Am not going to argue the BS-ness of it, but it has been in effect since the 1930s and is a seachange that'll affect almost all owners. It is an investment strategy that adds to the demand for and price of properties.

First, there'll be a tidal wave of people trying to beat the deadline.

I have no clue why changing things just to get more taxes is a good idea.

2 Reply

Henry Lazerow

Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes

5y

I sold 26 million in the last 3 years. Only a few clients have done 1031. I do almost all owner occupant 2-4 unit buildings which is why. Have done it on some 5+ deals. I still think it would just limit supply as people would hold on longer and that will make prices go up but who knows how exactly plays out.

1 Reply

Steve Morris

Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes

5y

OK, still doubt you do that much investment property, but almost everyone from plexes up uses it as a lever to acquire more.

2 Reply

Edward Dawson

Rental Property Investor · Phoenix, AZ · Member since 2019 · 26 posts · 47 votes

5y

Anyone have more insight into Biden wanting to get rid of the 1031, and how realistic that would actually be? Seems like it would be an uphill battle to actually get rid of that?

0 Reply

Steve Morris

Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes

5y

Originally posted by @Edward Dawson:

Anyone have more insight into Biden wanting to get rid of the 1031, and how realistic that would actually be? Seems like it would be an uphill battle to actually get rid of that?

Google "wharton biden tax plan", think that's about as unbiased and insightful as we have. It's on the list and I think Biden's big plan is to raise more taxes or get rid of breaks.

Think the stopper would be keeping the Senate R, if it flips, he prob has the votes.

0 Reply

Blaine Alger

Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes

5y

(THIS IS NOT A POLITICAL POST JUST MY HONEST OPINION IN ORDER TO STIMULATE CONVERSATION)

The only thing that I am worried about is how Biden's administration will deal with the upcoming foreclosures/evictions.

I feel Biden is very moderate in his political beliefs but I think the democratic party will try to force him to make decisions that appease the more liberal side of the party. I know some of the upcoming senators/representatives in the democratic party lean more on the left and are not a huge fan of landlords ( A.O.C., Allison Clarkson, etc). I am concerned that these beliefs will trickle through legislation and Biden will be forced to support them in order to keep the Dems happy.

However, there are still many other Democrat legislators who are investors themselves and are opposed to some of the proposed changes and are aware of how RE investors stimulate the economy and provide housing, so hopefully this will keep the scales balanced.

6 Reply

Brian BoydPro Member

USA · Member since 2019 · 305 posts · 536 votes

5y

It really depends on the control of the Senate. A GOP controlled Senate is not likely to place tax increases on the legislative agenda. If the Senate splits 50/50 or falls in the control of the Democrats, I would expect a reversal of the tax cuts, elimination of the 1031 exchange and elimination of bonus depreciation under Section 179.

3 Reply

Anthony Wick

Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes

5y

*I have not read any comments thus far....

Nothing to worry about, in my opinion. With the GOP most likely holding the Senate majority, it will be four years of stagnant policies, save for some Executive Orders. A new Stimulus Bill might help those that are sitting on rentals without rent coming in. But in the long run, the stock market and real estate will continue to climb and make many of us prosperous.

1 Reply

Paul Shannon

Rental Property Investor · Fishers, IN · Member since 2016 · 337 posts · 470 votes

5y

Interest rates are super low and we are capitalizing by using leverage to buying inflationary assets. Powerful combo no matter who's in charge.

With a divided government likely, I'm less concerned about policy change.

Best defense is to diversify. Predicting the future is foolish. Stay the course and protect the downside.

2 Reply

Sean Gribbons

Flipper/Rehabber · Denver, CO · Member since 2015 · 134 posts · 61 votes

5y

IMO could be devastating. Trying to remove 10-31 exchange, raising cap gains rates, taxing stock market etc. But truly the most scary thing is how easily they will shut down the economy. With COVID numbers and testing this crazy they will shut down the states and cripple the economy. The people most affected are the hourly workers who are the main tenants for Class A,B, and C apartments. When they tell landlords you can't evict. What do you do? You can't 10-31 into another property. You can't evict... You can't demand rent payment. They tie our hands and all we have left is hope which seems to be slipping

4 Reply

Michael Deering

Rental Property Investor · Lehigh Valley, PA · Member since 2017 · 200 posts · 191 votes

5y

The DNC have great intentions but they require centralized planning, and those planners are not the working class. The DNC has been the party of finance and Wall St the last 15 years so I don't anticipate these people pushing out a tax plan that hurts the rich.

I do anticipate the DNC being vocal about increasing the income tax on the W2 rich and I anticipate the DNC being silent on a backdoor Social Security or Medicare tax on everyone that pay taxes.

I hope Biden keeps the Trump tax plan but if he doesn't I am again positioned to benefit by getting my full write offs back.

0 Reply

Robert Withers

Real Estate Agent · Cupertino, CA · Member since 2018 · 14 posts · 3 votes

5y

He’ll tax the heck out of you.

2 Reply

Jonathan Tavarez

Flipper/Rehabber · Laurel, MD · Member since 2016 · 139 posts · 109 votes

5y

I think that rates are not going up regardless of who's in office, in my opinion the only "immediate" real estate event that could shake things up will be the end of Cares act forbearance at the end of the year. Taxes well who knows, typically with democrats taxes tend to go up but honestly with current Covid numbers and the issues with transition of power I just don't thing increasing taxes will be a priority in 2021. (But for sure APR in the year 2030 will be like 50% so we can pay back all the money given out in 6 months of 2020)

2 Reply

Steve Morris

Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes

5y

I just don't thing increasing taxes will be a priority in 2021.

Hate to disagree, but Biden has already said the rich (ie anyone with a job) are not paying enough and he wants to fund green energy and affordable housing projects.

On interest rates, I kinda thought they'd go up also, but right before COVID hit, the economy was going nuts and they still said they didn't want to raise rates. I don't think they have that much more down side on rates in any case.

2 Reply

Thalia Mena

Real Estate Broker · Chicago, IL · Member since 2019 · 44 posts · 12 votes

5y

@Mike Dymski I agree!

1 Reply

Mark McClure

Rental Property Investor · Jacksonville, FL · Member since 2016 · 25 posts · 25 votes

5y

https://www.realtor.com/news/trends/how-biden-will-shape-us-housing-market/?identityID=56afda9af30d87d368000863&MID=2020_1109_ArticleNL&RID=3697516982&cid=eml_promo_Marketing_NonPRSL_ArticleNL_cons.12127902_2020_1109_ArticleNL-hero-blogs_trends

Realtor.com's take on a possible Biden Presidency.

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Wale LawalBusiness Member

OP

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

5y

Originally posted by @Jonathan Tavarez:

I think that rates are not going up regardless of who's in office, in my opinion the only "immediate" real estate event that could shake things up will be the end of Cares act forbearance at the end of the year. Taxes well who knows, typically with democrats taxes tend to go up but honestly with current Covid numbers and the issues with transition of power I just don't thing increasing taxes will be a priority in 2021. (But for sure APR in the year 2030 will be like 50% so we can pay back all the money given out in 6 months of 2020)

Interesting! Time will tell

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Cathryn Sta

Investor · San Francisco · Member since 2020 · 39 posts · 28 votes

5y

I'm not a Trump supporter, so I appreciate your unemotional response. I'd really like to learn from other perspectives and it's refreshing when we aren't yelling at each other. Thanks for the clear explanation.

Originally posted by @Dan Bass:

@Wale Lawal tough to say. As a Trump supporter I will try to keep my response without emotion.

Biden has stated he wants to rid 1031 which directly impacts RE investment.

Biden has said he will listen to scientists and will shut down the economy if they say to do so.

Who knows how he would respond to rent moratoriums and mortgage moratoriums.

Interest rates will stay low per the Fed.

His side of the isles policies would favor the tenant overall so that could be nationwide or per state.

The Senate is our saving grace in hopes it stays red.

0 Reply

Pete Winslow

Rental Property Investor · Scottsdale, AZ · Member since 2019 · 23 posts · 21 votes

5y

I am planning to focus on growing my business. As long as the numbers work with the policies in place at the time of purchase I am not worried. I will adjust as needed going forward.

4 Reply

Ron Fletcher

Leclaire, IA · Member since 2016 · 161 posts · 130 votes

5y

@Wale Lawal

If someone takes who the president is into consideration of real estate they are forgetting that real estate is a LONG term investment that will theoretically be held through many party turnovers.

4 Reply

Derrick Dill

Investor · Hawaiian Gardens, CA · Member since 2015 · 308 posts · 386 votes

5y

Fed controls interest rates, Fed Head (Jerome Powell) said they plan to keep interest rates at 0 until 2023.

There's currently an eviction moratorium in place. I am purchasing a house with a tenant in place right now, and the tenant hasn't paid in 3 months. I consulted an attorney, and he told me the courts are closed and he cannot be evicted in this county until March, 2021. Attorney suggested cash for keys arrangement to resolve. Only thing worse than this eviction moratorium is extending this moratorium for me personally

1 Reply

Sam Shueh

Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes

5y

Possibly tax credit for first time home owners.

1 Reply

Lesley Resnick

Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes

5y

I vote for GRIDLOCK! Democratic president and everything else should be slightly republican (House and Senate). They should spend their time arguing and postulating about the other side and DO NOTHING! I can not afford any more help or our government to "fix" anything. It's not that there aren't areas that could use improvement, but Government has lost all ability to efficiently do anything. I fear that in the name of good deeds we all will sink.

11 Reply

How Will Joe Biden as US President Affect Real Estate

How Will Joe Biden as US President Affect Real Estate

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