Who do you think will be the best bet for luxury real estate, Hillary Clinton or Donald Trump? Americans don’t have much information about either candidate’s positions on the U.S. housing market even today as they head to the polls. I am neutral when it comes to politics but hope this blog will shed some light on the question.
“Voters shouldn’t necessarily be surprised by the little attention that Hillary Clinton and Donald Trump have paid to housing this election cycle,” explained Ralph McLaughlin, the chief economist at Trulia. “Eight years ago, housing and the economy were the main talking points of Obama and McCain because millions of homeowners were going through foreclosure and the economy was in shambles.
Today, the housing market and US economy look much healthier, and as such, candidates have turned their attention to more popular issues such as immigration, gun control, and national security.”
According to a story on CNBC, the answer lies in each candidate’s wider economic policies. Both candidates claim they will grow the economy, with housing being one of the central issues. Think about it: from the amount a homeowner spends on a house, to the jobs and materials used in home construction, housing is key.
While Republican Donald Trump is a real estate mogul, he has invested largely in hotel and multifamily housing development. His entire campaign has been about growing the economy and slashing regulations.
Meantime, Democrat Hillary Clinton has the advantage of building on a framework already in place under the Obama administration. She has proposed closing real estate loopholes and dramatically raising taxes for the wealthy — the average member of the top 0.1% would pay more than $800,000 extra under her plan. But, Clinton has also put forth proposals to increase homeownership, which is now hovering near record lows. This would be beneficial to the industry as a whole.
Trump would eliminate the estate tax on large inheritances, while Clinton would increase it from 40% to 65%. Both candidates propose taxing capital gains at death.
Clinton’s tax increases would fall almost exclusively on businesses and taxpayers in the top 1%, with modest tax cuts for poorer households while Trump would cut taxes for most, but not all, Americans.
I hope this info on who is the best bet for luxury real estate gives you a little to consider as you go to the polls. Although I remain neutral when it comes to politics, I am paying close attention to the election to share what I learn with my clients so they can make an educated vote.
I also pay close attention to the real estate market here in Santa Barbara. If you are listing your property or looking for a new home in Montecito or any of the upscale communities in Santa Barbara please give me a call at 805.886.9378 or email me at Cristal@montecito-estate.com. I am happy to put my knowledge and contacts to work on your behalf! Now go make your vote count!