Wealthy Families Might Get Caught in Trump's Housing Ban

The Rule is Aimed at Big Companies, but Family Offices Might Be Swept Up Too

These offices manage money for rich families and often invest in real estate.

Key Points

• 75% of family offices in North America put money into real estate.
• On average, they invest 18% of their money in properties.
• A big chunk of this goes into homes.

Unclear Definition of "Large Institutional Investor"

The exact impact of Trump's plan depends on how they define a "large institutional investor." This definition is still unclear.

• In the past, the focus has been on the number of homes owned, not the total money or strategy.
• A recent report looked at investors with over 1,000 small properties.
• Some laws even target those with just 50 homes.

Potential Impact on Wealthy Families

This could include many wealthy families who made their money in real estate.

• Family offices usually prefer big buildings and commercial projects.
• But some, especially in the South, have many single-family homes.
• The structure of family offices varies widely. They are not legal entities like corporations or LLCs.

Expert Opinions

• Experts say family offices might not be the main target right now.
• The focus is on big Wall Street investors.
• But it's unclear if the rules will expand to include others.

Future Outlook

• The first step is crucial. It needs support and momentum.
• Will it fade away, or will the administration keep pushing it?
• Only time will tell.