Since my last letter, we have elected a new President of the United States. Whether you are for or against him, Donald Trump will be our new President come mid-January.
It seems quite clear that our POTUS-elect has chosen to put successful businessmen in positions to advise and direct our country’s finances. I was told today that America’s economy is the biggest business in the world. Therefore, why wouldn’t Trump hire the most successful and brightest business people to run the government? The Obama Administration went the other way and specifically avoided placing business people in his government and advisory positions.
Social issues aside, I think the Trump Administration will be good for business and will dramatically increase the economy. This will go a long way to stabilize and increase residential real estate values. Additionally, any possible tax cuts in capital gains and ordinary income tax rates will also have a positive influence.
One potential problem could be interest rates. Rates have been at or near historic levels for years, but if the GNP increases then we will see a consistent rise in interest rates. This increase will certainly have an effect on first time or average price homebuyers as well as developers relying on bank loans to finance their projects.
The best we can all do is support our new leaders and wish them and our country well. Looking outside our country, it is evident that the United States is the most secure economy in the world in which to invest6