April 6, 2012 by Aron Susman
Foreign buyers consider U.S. markets to be prime for investment
The current commercial real estate market appeals to buyers in major cities such as New York City, Dallas, Houston and Austin. However, experts say businesses conducting an office space search may soon increasingly find themselves leasing properties owned by foreign investors, who consider the market's current position ideal for investment.
According to a recent press release from Bloomberg BNA, a legal news source, foreign investors have viewed the United States' depressed real estate market as a prime opportunity to buy properties while prices are low. Residential and commercial real estate properties are all of value to these investors, said the report, many of whom are interested in making a long-term investment.
One potential point of difficulty for these investors may be their ability to reconcile the tax implications of owning property in the United States. Some may be unfamiliar to United States' real estate tax law, or may benefit from learning strategies on how best structure and handle these responsibilities.
"In determining the appropriate ownership vehicle for U.S. property, whether U.S. LLC; foreign corporation, U.S. corporation or individual ownership, counsel for foreign investors must balance a variety of tax consequences, U.S. income, capital gains and estate taxes," says Allen Appel, who presented a webinar for foreign investors at Bloomberg BNA's website late last month.
A higher number of investors in the commercial real estate market could mean new opportunities for businesses conducting an office space search in New York City or Houston. These businesses could benefit from the assistance of a commercial real estate consultant to secure the most suitable New York or Houston office space for their needs.
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