Luxury Portfolio Vol. 08 Issue 01 - Gary E. Richardson

INSIGHTS FOR LUXURY BUYERS IN 2018

When purchasing a significant property, buyers should be aware of several factors during the buying process. The home’s location, new tax laws and your personal portfolio are all important issues to consider, whether purchasing a new primary or secondary home. For details and additional insight into economic factors that influence the buying process, we sat down with LeadingRE Chief Economist, Marci Rossell.

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MARCI ROSSELL, PH. D., CHIEF ECONOMIST FOR LEADING REAL ESTATE COMPANIES OF THE WORLD ® As a former Chief Economist for CNBC and groundbreaking financial journalist, Rossell served in this position in the months immediately following September 11th. She is known for taking complex economic issues and making them relevant to people’s lives, families, and careers. Investment Spokesperson for OppenheimerFunds, one of the nation’s largest mutual fund companies, and prior to that, as an economist with the Federal Reserve Bank of Dallas. Rossell earned a Ph.D. in economics from Southern Methodist University, where she was named one of the Young Alumni of the Year in 2002. She brings a world of experience — from Main Street to Wall Street — when discussing the U.S. economy, international events, and movements in capital markets. Prior to her career in broadcast journalism, Rossell served as Corporate Economist and

TIMES ARE TAXING Politics — rather than economics — is driving real estate across the globe. The new changes to the U.S. tax code cap the deduction for state and local taxes to $10,000. Over the next decade, Marci predicts that low-tax states will see an increase in home buyers that will potentially put upward pressure on prices in those areas. Now is the time for the affluent home buyer to keep their accountants on speed dial because laws are changing quickly. A home is often a part of a larger portfolio and changing tax laws have an impact on the taxes on your individual assets, particularly if there is a change in geography. Though it may be discouraging for high-end buyers in high- tax states in the U.S., don’t be surprised if, in the next few years, we see a financial innovation that mitigates the tax problem. In Europe, the political consequences of Brexit will impact luxury markets for the next decade, as financial centers such as Frankfort benefit from the gradual exodus of business from London.

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