Since Donald J. Trump was sworn into office on Jan 20th of this year, and in just short ten days (writing on 1/30), he has caused chaos and panic in countries, communities and markets. How could the Trump Presidency affect the Toronto Real EstateÂ Market?
1 – Property Prices Are Going Up, WAYÂ UP:
The average price for a nightâ€™s stay at Trump Hotels shot up 30% immediately after the election*. It will go up more. Why? Because we are all invited to play the Billionaire Game, regardless if you can afford it or not.
What does that mean? It means that ALL PRICES are going up. This is just the beginning. Just watch the price of a single lemon, or orange, at your local store, and see how it goes up. Itâ€™s an indication for Inflation, or Cost of Living.
Mark myÂ words:
Toronto Real Estate Prices will go up 10â€“20% inÂ 2017.
2 – Rents are going up, WAYÂ UP:
When Property price go up, it costs more to maintain, simply bc the mortgage amount is larger. Hence a need to raise rents so investors can retain their earnings on the units. If they cannot, they will divert their funds elsewhere, causing decrease in availability hence further price increase.
Investors, you must make up your minds and secure your investments now, otherwise youâ€™ll pay more for them later, and make a lesser return. The best way to do this is to give us a call or email and start a discussion about a property that would fit your needs. We are reachable at www.UrbanRealtyToronto.com
Investors & Renters: Prepare for Rent Increase.
Renters, you are about to pay a lot more for your rents. I say prepare for a 10â€“20% increase in your rents, every year, from now until further notice.
3 – Mortgage Rates are Going Up,Â Up:
The Banks and The Fed want their share of the pie. When Inflation hits, EVERYTHING becomes more expensive. What a better time than now to raise rates and cash in? It will be done gradually, like a frog put in cold water brought to boilâ€¦ get it?
Prepare for a rate increase. Do itÂ now.
Is it time for you to refinance? Do it now. Is it time for you to sell? Do it now. Is it time for you to move? Is it time for you to lock in? Do it now. Do it now. Do it now.
4 – Planners Excel, Panickers Pay.
When youâ€™re in a state of panic and ambiguity, you canâ€™t think straight, so you donâ€™t make the best decisions. As a result, you do not maximize returns on your investments, or perhaps you leak money.
The Trump way is fast and â€œunanticipatedâ€. That is of course, a media glitz. With a bit of knowledge and wisdom, one can imagine what is about to happen, and act accordingly. And thatâ€™s the point here; a huge change is coming, it is an ustoppable wave that crushes all that resists it. Want to make it through? Find the gentle way to float your way, down the stream.
Plan Ahead and Capture theÂ Moment.
Those who are stuck in their minds, on any side of the rainbow, are about to face great difficulties. The norms and strategies of yesterday are no longer valid. Continue with your old ways and you will experience financial (and other sorts of) pain. Forget what you know, open your mind and learn to swim in this new ocean of possibilities. Try something new!
5 – Insider Information and Access is EVERYTHING
In â€œThe Old Daysâ€, like, a week ago, people will line up for a couple of nights in the cold to buy a condo. Yaâ€™ll remember the lineups and the â€œfake mediaâ€ screaming here is the crash. That crash never happened, the lineups are still there and the media has lost its validity after we all start to realize that all media is fake media.
These lines were based on two major factors: one, that Toronto is globally under priced. Two, that you had access to the line. The system worked well for years. Now, prices are way up, and the lineups no longer make sense. Why? Because buying at full-rate with 80% or 90% investors sharing the same project is like buying into a college dorm, without the college.
So letâ€™s introduce a bit of sophistication and thinking out of the box to help you make a better return. Use your knowledge. Do your homework. Avoid glitzy marketing, they are for the fools. A good investor prepares. A great investor reads between the lines.
Avoid glitzy marketing, they are for theÂ fools.
In Peace and Prosperity,
Jan 30, 2017
Yossi Kaplan is a registered Real Estate Salesperson with Search Realty Corp. He is a graduate of the Executive MBA at the Richard Ivey School of Business. Yossi is reachable at 416.993.SOLD or online at www.UrbanRealtyToronto.com
Disclaimer: The prophecy was given to the foolsâ€¦ I represent myself only and no one else, and my opinions are mine and only mine, so, do your homework and get professional advice with every investment.
* as heard on one of the main â€œfake newsâ€ outlets.