Wednesday 9 November 2016

Is this the Trump card for investors in Clapham?

Wow what a year it's been. We've had so many changes on the playing field (property market), stamp duty, increased taxation, more regulations, Brexit, and now.... TRUMP! But what will the last change mean for homeowners and investors in South London?

Let's go over a few factors which will influence the housing market, be it purchasing or rental demand:

Immigration - Trump has been rather outspoken on his immigration views; practically wanting to stop Muslim immigrants at the border and deport Mexicans en masse. Result, lower demand in the lower end of the market, but increasing domestic wages.

Inflation - This will go up if imports are reduced and Americans are forced to spend more on goods produced locally rather than manufactured for less in the Far East.

Taxes - Trump promises to cut taxes in general, especially for corporations, thus increasing rewards for entrepreneurs domestically.

Markets always react to change. Normally investors head for cover, which is no different today. Gold prices are up, and the Dollar price is down today vs the Pound, but Wall street is reported to be surprisingly calm.  No knee jerks really. This is probably also due to the fact that Trump won't take office for another two months.

In a recent interview with City A.M. some big investors warned that "knee-jerk reactions won't get us anywhere." Sounds like Brexit all over again! But what does this have to do with the UK? Well, the housing market is only a small part of the country's macro economy. Ultimately the housing market is linked with investor confidence. When the public is confident and we are in an environment of political stability, prices continue to rise (however inflation going up will be a good thing for homeowners, their house prices will be linked to inflation to an extent).

I am confident that despite there being change in recent times, the USA and the UK are still in a politically stable environment. Civil unrest isn't on the cards, is it? Yes there will be changes, but if there's one thing that Trump does have, it's business acumen. My statement will be debateable I'm sure, but as mentioned I don't think that "unrest" is a way to describe the US/UK climate, be it political or economical.

I am a career property property professional and I have built portfolios for many clients. If you are interested in investing your money in the London property market then I can help you get the best returns so that you needn't worry about risking your capital. I offer a range of investment options such as portfolio building for high yield and maximum capital appreciation with hands-off management (armchair investing) or opportunities to invest your money into refurbishment projects for relatively quick returns on your capital. If you are interested in working with me do get in touch on or come down to the Clapham Property Meet and learn more about investing in the London property market.

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