This WealthBuilders Podcast with Karen Conrad Metcalfe and Bill Bronchick discusses how the incoming Trump administration could impact the investment and real estate market.
The discussion will touch on lower interest rates, regulatory issues, federal land development, tax incentives, assuming VA and FHA loans and more. You will learn that the crucial focus in the next year for investors is local market conditions.
Tune in for an optimistic look at the new Administration regarding an increase in real estate activity.
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Episode Show Notes
Impact of Trump Administration on Real Estate
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Trump’s promises need congressional approval to be effective, note the larger Senate majority.
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There are pending election results, which could affect the discussion.
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Potential impact of lower interest rates on mortgage rates and the housing market.
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Short-term rates are not directly linked to mortgage rates, which are tied to long-term bond yields.
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Recent Fed cuts did not lower mortgage rates, which instead increased.
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Increased demand on housing prices and supply is not altogether good.
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The trend of homeowners renting out properties due to high interest rates.
Regulatory Impact on Landlords and Tenants
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Regulatory challenges are coming for landlords, particularly at the state and city levels.
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Impact of anti-landlord legislation in Colorado.
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Punitive regulations can drive landlords out of business, reducing rental supply and increasing rents.
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There is potential for Supreme Court intervention in local regulatory issues.
Short-Term Rentals and Local Regulations
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Short-term rental impacts local economies, citing a 20% reduction in tourism revenue in Telluride.
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Balancing between promoting long-term rentals and generating tourism revenue.
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Vacation Rental Intensive Seminar–purchase recordings here. Vacation Rental Intensive USB
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Cities face challenges with short-term rentals and the resulting regulatory responses.
Investment Opportunities and Local Market Dynamics
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Know where to invest, considering local regulations and market conditions.
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Possible need to divest in certain cities due to excessive regulations.
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Potential rent control in Denver and its implications.
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Federal and state policies supporting affordable housing and development.
Federal Lands and Housing Development
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Trump plans to open some federal lands for development and the challenges involved.
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The role of immigrants, including undocumented workers, in the construction industry.
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Supply and demand issues in the housing market, with a focus on the need for more supply.
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Possible easing of regulations and offering tax incentives to encourage development, especially of low-income housing.
Tax Incentives and Capital Gains
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Potential impact of Trump’s tax policies on capital gains for investors and developers.
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Previous administration’s proposed increases in capital gains tax.
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Possible capping of capital gains for small investors to encourage investment.
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Potential for state and local governments to implement similar tax breaks.
Public Hope and Market Optimism
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Increased hope and optimism among people since the election.
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Optimism due to the potential for positive changes in the market.
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The impact of optimism on the stock and real estate markets.
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The Real Estate Investors Association in Colorado and the impact of market conditions on investor participation.
Future Outlook and Investment Strategies
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HUD or administrative agencies could influence Fannie and Freddie to support investor financing.
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Challenges faced by investors in the current market, including stricter lending regulations.
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Potential for a real estate correction or crash and the role of the new administration.
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Government control of spending to avoid inflation and high interest rates.
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Trump’s focus on saving money and reducing excessive spending.
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The impact of Trump’s policies will take time to be felt, with 2025 likely to resemble the current market.
Advice for Investors
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Focus on local market conditions and specific neighborhoods.
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The value of owning lower-income rental properties due to their stability and demand.
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Potential for short-term rentals and the importance of understanding market dynamics.
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Bill and Karen are both speakers in the upcoming 10th anniversary WealthBuilders conference.
