TR_Nov-Dec_2022-LR

FUNDING

INFLATION REDUCTION ACT

SPONSORED CONTENT

The Effects of the Inflation Reduction Act on Real Estate Investment Strategy IT IS BEST TO BE ON ALERT AND PREPARE AS YOU CONSIDER YOUR NEXT REAL ESTATE INVESTMENT.

by Susan Naftulin

all Street and lenders should be on high alert since the passage of the 2022 Inflation Reduction Act (IRA), with an earmark of $46.5 billion for enforcement activity. The question on everyone’s mind given the allocation of funds to the Internal Revenue Service is: “Will IRS audit rates increase?” The answer is “yes,” but how will that impact private lending? Over the last few months, we’ve all watched closely as Federal W

Reserve actions to control inflation have affected the housing market. Increased interest rates have slowed housing sales, and homes on the market are much less affordable than they were just three to six months ago. As a result, housing affordability has been reported as the worst in 37 years. The challenged market has caused a deceleration in home values, leaving homeowners and real estate investors in limbo about

the best timing for considering a sale or refinance for cash out. The good news for some investors is that rental demands are still at an all-time high due to the already existing housing shortages. DIRECT AND INDIRECT IMPACTS Real estate investors are seeing both the direct and the indirect impacts of these market

8 | think realty magazine :: november – december 2022

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