by Martin Drake on biznow.com
Last month’s FIRPTA bill—a ruling easing regulation of foreign investors—should give a big boost to US real estate as the industry heads into a potential recession, Association of Foreign Investors in Real Estate CEO Jim Fetgatter says.
The changes allow foreign investors to hold 10% (vs. 5% before) of a REIT’s stock without triggering FIRPTA taxes. The law also gives foreign pension funds the same FIRPTA status as US pension funds.
Jim says the change can only make things better for US real estate, as FIRPTA “has been a big impediment for foreign investment for a long time, especially for the pension funds.”
Multifamily and industrial properties are the hottest buys for foreign cash, so they’re the most likely to see a boost from the new rules.