High-income taxpayers getting the eye from the IRS; Memorial Day kicks off a travel surge amid labor shortages; foreign investment sees everything's bigger in Austin; a healthcare REIT that's just OK.
In Today's News
Biden's IRS Crackdown Plan Targets Rich Hiding Half of Income
The U.S. Treasury Department estimated that wealthy taxpayers as a group are hiding more than half their income outside of wages and salaries, Bloomberg reported today [subscription required], a conclusion that aims to bolster the Biden administration's call for Congress to approve expanded IRS funding and broad new financial-transaction reporting requirements.
The Millionacres takeaway: The report says this is part of the Biden administration's plan that also targets income earned from small businesses, rental properties, and other so-called pass-through entities.
Memorial Day Outlook: Sunny, with a chance of shortages
The Memorial Day Weekend Travel Boom: What Investors Can Expect
More than 37 million Americans are expected to travel 50 miles or more from home May 27 through May 31, 2021, which could be great news for short-term rental owners, hotels, and business owners in the tourism and hospitality fields.
The Millionacres takeaway: Our Liz Brumer writes that increased traveling is also a sign of increased spending, which has positive ramifications through multiple sectors of the economy.
Staffing Shortages Pose a Threat to Hotels' Budding Recovery
Hotels say they are struggling to hire enough housekeepers, kitchen staff, and other hourly workers -- including the ones they laid off early in the COVID-19 pandemic -- ahead of an anticipated upswing in leisure travel, The Wall Street Journal reports [subscription required].
The Millionacres takeaway: There's still a long way to go before this real estate segment recovers, and that could mean investment opportunity. Our Matt Frankel looks at two players in the hospitality game.
Also Today on Millionacres
Why Are Foreign Investors So Interested in Austin?
According to the 2021 AFIRE International Investor Survey conducted in March, almost a quarter of foreign investors ranked Austin, Texas, as the No. 1 spot for increasing their commercial real estate investments this year. Another third ranked the city in their top three.
The Millionacres takeaway: Our Aly Yale looks at how this interest and huge investments by major tech firms are driving an unprecedented boom in the Texas capital. She also points out that smaller metros like Boston and Dallas also ranked in the top three alongside Austin, while big cities like New York, Chicago, and San Francisco are seeing waning interest from investors. Whether these trends continue remains to be seen.
Ventas: Things are Better But Still Not Good
Healthcare real estate investment trust (REIT) Ventas (NYSE: VTR) has been working hard to muddle through the hit from the coronavirus pandemic. It hasn't been easy, but there are signs that an inflection point may be at hand. That's great news for investors, of course, but it doesn't mean business is anywhere near back to normal.
The Millionacres takeaway: Our Reuben Gregg Brewer puts his discerning eye on this well-known senior care REIT, making the case why this might be an enticing buy for a stock for the patient investor willing to take on some risk for later reward.