Trump’s triumph- What does it mean for Australia?
Donald Trump’s shocking victory has shaken the world a bit. Real estate experts across the world are expecting some sort of uncertainty like the one felt right after Brexit! Trump is a property industry leader by himself and for which his presidency would be pro-property and pro-real estate. We can expect a reduction in oversight and regulation, and it can benefit the flow of capital to small and medium-sized businesses, and which in turn will be beneficial for crowd-funding. However, it’s too early to predict anything now. The whole world is scrambling to understand the prospects of this victory and Australian property market is no exception.
Although, it’s too early to be optimistic about anything at the time being, we have carefully churned out the following predictions after a thorough analysis of the situation. Check them out below:
A boom for luxury real estate market
Mr. Trump’s presidency would hugely benefit the global luxury real estate markets worldwide. If the greenback eventually slips down, a devalued dollar would be good news for many international investors. The weakened dollar would eventually turn other currencies stronger.
High volatility rate
The election result may create volatility in financial markets and it tends to attract more investors into real estate. Bonds have already surged since the announcement of the results. Trump proposed major policy changes during his campaign, starting from overhauling the tax code, repealing the Affordable Care Act and even negotiating trade deals. These could have huge implications on market volatility in the future.
Profitable for small-time investors
The current economic condition is not very viable for small investors. But Trump’s victory may influence community investing, peer to peer investing etc. It would help investors to return to investing into one another.
A green card for Australia
Trump’s victory reflects a lot of risky predictions for the foreign investors. Trump adds sovereign or crown risk, which is not at all positive signs for inward investors in the US. It will surely affect the amount of capital, the types of investors and the expected level of return. Mr. Trump has already announced to wind back trade deals between US and China, and it opens a big prospect for the Chinese investors to concentrate more on Australia. According to Juwai (Chinese property portal), the US is the first chosen destination for Chinese property buyers, and Australia comes as the second. But with all these fluctuations, the demand of foreign investors to buy in the US will decrease over time and high net worth buyers will choose Australia as their next preferred destination.
After a major event like this, there would be a lot of wild swings. If you are saving for your retirement, then we advise you not take any major step right now. You should not make your immediate foray into any specific sectors to place big bets. It is advisable for long-term investors to stick to their plans. People may invest their money into money markets rather than real estate. There are several speculations and expectations. The overall tone of the prediction is optimistic for the investors. Therefore, the short term may see investors hold off investing anywhere until things are more certain, but in the long run, Australia will surely become a more attractive, secure and less risky destination for global capital.