Escaping NY Real Estate? Where To Put Your Capital Now
NY’s massive $400M fine for former president Trump is sending ripples through the investment space. It’s likely to be the last straw for the few remaining investors that have kept their capital in what used to be the financial capital of the world.If you are looking to exit assets there, or have already sold, and have capital you need to deploy, where do you put it now?
Last One Out, Turn The Lights Off
Between Trump’s huge fine, which is growing at around $100k a day, along with threats of seizing his properties in NY, has many other high-profile investors slamming the verdict and saying they are pulling out of investing in the state immediately.
It’s not about who is involved. It is the ability to arbitrarily place values on properties and seek forfeiture of properties.
This is just the icing on the cake for investors who have experienced a nonstop tripling down on policies making it harder for investors. Which runs from rent controls to new and higher real estate taxes, and more.
The only upside of this new legal stance may be that NY has finally opened itself up to billions of dollars in counter lawsuits from all of its property owners which have received flawed and overblown property tax assessments for years.
Meanwhile, we can expect a fresh round of investors, businesses, and individuals fleeing the state with their cash. While investment firms, banks, and other lenders stop making loans in the Empire State.
Where To Put Your Capital
Real estate is still the best investment in this economy. It offers downside protection, goes up with inflation, and provides tax saving advantages.
Fortunately, there are many great ways to roll over capital into real estate investments in other areas, like 1031 exchanges, and other tax saving vehicles.
There are a variety of factors influencing the market this year. Including people and wealth moving between states, ongoing inflation fueled by a lack of Fed rate cuts, a changing employment market, and extreme lack of affordable housing.
These are all creating more profitable opportunities in acquiring performing and value add multifamily apartments. As well as acquiring entire communities from builders to convert to rentals.
