Real estate tycoon, capitalist and believer of business as a growth engine for the economy: These are only some of the defining traits of President-elect of the United States, Donald Trump. Beyond the global political interest ignited by his victory, many analysts are trying to assess how his tenure as President will affect the American economy, and particularly, the real estate market. Israeli real estate investors, who already have a finger in the investment pie of the “Land of endless possibilities,” as well as beginner investors, are currently all fixing their gaze on the USA.
As investors, We’re rather pleased with Trump’s victory in the US elections.Trump is a well-connected businessman who is tune with the interests of the business sector, and believes in encouraging financial growth.
“As investors and businessmen who are always on the lookout for alternative ways to invest our money, we’re rather pleased with Trump’s victory in the US elections. Trump is a well-connected businessman who is in tune with the interests of the business sector, and believes in encouraging financial growth by keeping interest low, lowering corporate taxes and focusing on infrastructure development. Essentially this is good news for the real estate market,” says Dan Danieli, CEO of CiTYR USA and expert on income-producing real estate.
A Boost for the Real Estate Market
According to Danieli, “It’s likely that in the short term we’ll witness some volatility in capital markets and stock exchanges worldwide, due to the element of uncertainty. But the residential property market, which now forms a significant part of the investment portfolios of large organizations around the world, has proven immune to change in the past, demonstrating swift recovery and even growth after the 2008 crisis.”
According to Ira Zlotowitz, President of American company Eastern Union Funding, Trump’s plan to introduce a policy of regulatory relief means good news for the business market.
Ira Zlotowitz, President of American company Eastern Union Funding, is also pleased with the surprising result. “The employment market is expected to gain strength, salaries are expected to rise and tenants will be able to pay higher rent,” he explains, adding that Trump’s plans to introduce a policy of regulatory relief means good news for the business market.
“Making America great again”
Upon receiving the election result, Trump promised in his victory speech to rebuild American cities which lost their standing following the economic crisis, and were forced to relinquish jobs to other US states. “We have a great economic plan,” he announced. “We will double our growth and have the strongest economy anywhere in the world… We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become second to none, and we will put millions of our people to work as we rebuild it.”
Upon receiving the elections result, Trump promised in his victory speech to ” rebuild our infrastructure, wich will become second to none, and we will put millions of our people to work as we rebuild it”.
These messages garnered the support of the biggest ever voter mass – comprising the white working and blue collar classes. What remains is for Trump to prove himself and generate real change in economic status. This brings good tidings for real estate investors who focus on income-producing residential rental properties, and especially Multifamily residential complexes for the blue collar B+ class.
Economic Improvement for the Middle Class Could Lead to Rise in Demand for B+ Class Rentals
Lowering corporate tax, which encourages investment and multiplies employment opportunities, alongside improved economic status for the working class, will ensure stability and perhaps even a rise in the demand for B+ class properties. Property rentals constitute the most common housing solution in the US, and enable households to function with relative flexibility in expenses, ease of relocation between cities or states in the case of a job change, and most importantly – don’t necessitate purchase of a property or a mortgage.
“We estimte that Multifamily residential properties for the middle class will still maintain relative stability and might even enjoy accelerated growth within a few years.”
We estimate that even if in the short run the US economy experiences challenges and uncertainty in the capital market, Multifamily residential properties for the middle class will still maintain relative stability and might even enjoy accelerated growth within a few years,” concludes Danieli.