Moshe shares his expertise as to what a second Trump term will mean for the real estate market, and for business in general. Hint: expect massive growth in those sectors.
What Trump’s second term could mean for real estate:
“The way you can know about somebody is to look at their actions. So, we look at the first four years when he dropped the capital gains rate. So, that was one thing. But also, he had something called Accelerated Bonus Depreciation, where, if you own real estate, on your tax returns you can get more losses in accordance with the IRS with his policies. So, the natural instinct should be that he will institute policies that are pro-business and with real estate too.”
Be bullish on real estate … but start right now:
“I’m a big believer in buying real estate now, still, because interest rates have been coming down but they’re not fully down yet. So, the way it works is that when interest rates go down the value of real estate goes up. So, the best time – still – is to buy now, coupled with Trump, who is a real estate guy, and I guess that will help (going forward).”
Trump says he’d like the mortgage rates to be 3%. Will they fall that low?
“I don’t see mortgage rates getting to three percent. That happened because there was a (COVID) crisis. So, the Federal Reserve, to protect the economy (which is their job), lowered rates so steeply that they went to three percent. My bogey is kind of like that five percent. Rates are kind of at seven percent now, so I could see them going to five because I think that that’s healthy.”
Did Trump’s background in real estate equip him the tools to succeed as President:
“I don’t think anything really prepares you, but I think you just deal with things in your style. He deals with things in his style. He’s authentic. So, yes, there are skills like negotiating, seeing people and sizing them up, business negotiations, he loves that. He loves the art of negotiation.”
Buy a home as an investment, but be prepared to work on it:
“Always remember, with real estate, it’s very local. I keep using that as a great starting point and it’s hard, but everybody can do it. You find the worst looking property on the best block in the location you want to be in and do the work. Everyone thinks that real estate is passive. No, it doesn’t get to be passive until many years later, if at all. I’m still very, very active. So, you go to Home Depot, and you do the work, or you hire people and they do the work. That’s your job.”