Monday, December 5, 2016
Donald J. Trump is going to be the next president of the United States. Wow. So now what? How will this important and historically unprecedented political and economical development in America’s history affect your real estate portfolio? And what changes if any should you be making in your real estate portfolio? Look at the policies he wants to implement: international trade agreements, incentives for business building to create jobs, infrastructure improvements, and military expansion. Success or fail, people will still need a place to live. Houses will still be there and Americans will still live in those houses. However, it really comes back to the economy. If the economy does well, the real estate market will ride that wave upward as wages increase and rents increase and people trade up into nicer homes, this will all be positive for the real estate market. I see the economy and the real estate market as corollaries. If the economy improves, the real estate market will be robust. Both rents and prices will increase in a healthy Trump economy. However, the opposite will also be true. As the economy falls, so too do wages and home prices and eventually rents. Therefore, how do I answer the question, which was posed as the topic? How will the election of Donald J Trump affect your real estate portfolio and what are the winning strategies for the short term 2-5 years. The short answer deals with my conclusion two paragraphs earlier. What happens in a real estate market when there's a boost to the economy? Prices go up. So plan on that. The residual effect of a rising market is that increase rents and values on your hold properties. So take heart my child, you'll see that an entrepreneur's goal is to rise all boats not just his own. I'm excited to see how this will shape our industry especially if dodd-frank gets the pink slip.