The property derivatives market in the US could get a boost from a recent government ruling that reduces taxes on the investments, according to the Financial Times.
The move by the US Internal Revenue Service is expected to increase interest in US property derivatives, which have grown more slowly in the US than in the UK.
“We generally favour having such tools available to add flexibility and liquidity to our investor real estate programmes,” Rob Kochis, principal at property investment consultancy Townsend Group, told the Financial Times. “But that market is in its infancy in the US and not yet developed to the point where it has been useful.”