Here’s the follow up to our previous segment on the impact the Trump presidency will have on Eugene commercial real estate; in this segment René turns her attention to the regulatory and tax changes she expects to see.
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Patrick: Today I’m talking with René Nelson, CCIM, a well known multi family expert. In our previous episode Rene talked about some of the changes the Trump presidency might bring to commercial real estate. Today we’re continuing that thread, focusing in regulatory and tax reform. René, in your previous blogcast you mentioned reform, both regulatory and tax reform.
What kind of regulatory reform do you expect to see?
René Nelson: Well, I know the lenders nationally are hoping to see a restructuring of the Dodd-Frank Act. If that happened that could loosen up lending guidelines and I think we’ll see that trickle over into the commercial arena as well as the residential world. The rules and regulations right now from the Dodd-Frank Act are just really laborsome to lenders. It bogs down the system. There’s lots of red tape. I know the lenders are hoping that that’s going to be restructured and loosened up a little bit and yet we don’t want to see the lenders just go crazy like they did pre-recession and make a bunch of mistakes and start just loaning money willy-nilly. We want them to apply the guidelines necessary. It’s just what’s happening with the Dodd-Frank right now is really slowing down the process.
If we start to see tax reform, René, how do you see that benefiting commercial real estate in Eugene?
René Nelson: Well, with the tax reform we’re anticipating that consumers are going to start to feel that ease of taxes and then I think more people are going to start to have more available disposable cash, more cash in their pocket for spending. We’re going to see increase retail spending as well as people will continue to go out and increase their housing. I think we’re going to see a lot of renters as the economy is bolstered, there’s lots of jobs, people are out spending money retail-wise, I think we’re also going to just nationally see people want to spend more on their housing. Move into little nicer places, new places. That’s going to trickle into the commercial arena as well.
Patrick: Thank you René. Now our listeners know what changes in commercial real estate they might be able to expect due to the election. If you need more information go to eugene-commercial.com, or reach out to René at 541-912-6583.
Specializing in Lane County multifamily real estate in Eugene, René Nelson loves to share her insights and analysis with commercial real estate investors. Check our blogcast series regularly to keep up to date!
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