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Thursday, 16 March 2017

TRUMP' S AMERICA - REAL ESTATE PRESIDENT FACES SKY ROCKETING HOUSE PRICES

President Donald Trump
With the election of its real estate mogul president the USA opened 2017 with sky rocketing house prices that are obviously beyond the reach of ordinary Americans.  New in office President Donald Trump begun receiving criticism recently for hosting Japanese premier Shinzo Abe at his Mar-a-Lago resort in Palm Beach, Florida. Reports have it that Mar-a-Lago has already doubled its prices and fees for example what is known as the initiation rate that is charged on new members by the golf industry is now $200 000.00 hence the western media has called Mr Trump, Marketer In Chief. The American president's golf business empire uses his surname as its brand so its possible that he might have made economic gains through hosting the Japanese leader.





2008 Recession destroyed the plans of many US home seekers
There is serious cause for worry because the suffering being caused by high house prices is reminiscent of that caused by the 2008 recession because both are a stabling block to the foundation of the American dream which is home ownership. A look in retrospect at the 2008 recession shows that Americans are pieces on a chess board and politicians and corporate America are the players. This situation was buttressed by a gross lack of comprehensive real estate information on the part of the general populace hence the ordinary man is always a victim of disaster that suddenly happen without fore knowledge of its impending strike. For example many who borrowed money to buy houses had to watch those houses being confiscated after they failed to service the loans in the recession which financially decimated many home seekers. However, this kind of lending was a scum in which greedy bankers deliberately gave credit to anyone in a manner that was way beyond the capacity to do so. These bankers made millions in the grand scheme of things and ordinary people were disposables like an airtime card that could be thrown away once its scratched and used.  This happened despite the fact that provision is made for the home seekers' plight in the structure of government through the Department of Housing and Urban Development and its recently sworn in 17th US Secretary is none other than Dr Ben Carson who once was the president's primary election rival. We however know that the noble agenda to provide affordable housing for all is always talked about but its accomplishment is also always disrupted by the money man lurking in the corridors of power.

Its however too early to judge what Trump is up to so everyone will wait to see if he is or not the new front of the money man. So these high prices are probably due to scarcity of supply in the post recession era.  Nevertheless this does not stop the sky rocketing prices to wreck havoc again amongst desperate home seekers.For example in San Francisco houses which could cost around $600 000.00 in 2008 now cost $1 300 000.00. In Colorado a single family home was on average $205 454.00 in 2008 now costs $406 000.00, in Florida, Brevard County a single family home increased in value by 18% to $195 000.00 over a period of one year and in Les Vegas, Nevada the median home price is $238 000.00 and those less than $200 000.00 are in hot demand. In 2008 the house market havoc caused by the recession caused suicide and depression amongst many and in real estate forums I participated online I could see the same  frustration growing in Americans because of the current high prices.

This is the same frustration I see in many Zimbabwean home seekers because at every point in time there is always a detour that deviates the people's course towards home ownership. In the USA its insanely high prices, in Zimbabwe its a liquidity crunch and last time it was inflation. If a knowledge of some real estate information could have served some lives during the 2008 USA recession  it is therefore, imperative that I as a property consultant should offer some advice at this juncture as follows;

Know the ups and downs of the property market and the particular months of the year they occur.

Every property market has its ups when its called a sellers market and downs when its called a buyers market. A sellers market is when the demand is good and the price high while the buyers market is when the demand is poor and prices are low. This knowledge helps you to predict trends so that you become an actor as opposed to a reactor in the market.

Have a plan about what you want to use the property for.

The house you buy when you want to put tenants in is different from the one you buy when you want to stay in it. If you want tenants you should look for suburbs close to the CBD like Mainway Meadows, Belvedere (those in Zimbabwe) because rent increases with decrease in distance to the CBD but if you want a place to stay you are likely to prefer places further away from the CBD like Borrowdale,  Glen Lorne because these environments are peaceful therefore good for a family. 

The risk of a financial disaster is high in your life when you attempt to buy a house or any piece of real estate without the right kind of advice and information. Its important to be always reading about real estate and asking relevant experts in order to get a comprehensive picture of what the market is like when faced with decisions to do with property management, valuation, selling and buying.  I will be happy to hear from you in this regard. Do not hesitate to leave your message in the pop up widget that rises on the right side of your screen. You can even leave your contact details and I will come back to you.





2 comments:

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