fbpx

Trump could make the housing market boom for buyers

15.11.16

A Trump presidency could turn out to be a real boon for home buyers. That’s because the Donald has promised to cut taxes and shrink the number of tax brackets from seven to three. This could, in theory, leave buyers with more money to spend on the homes of their dreams. It could also give the luxury market, which has been slowing down as of late, a boost too.

Real estate analysts have been quick to point out however that some of the reforms laid out in the Republican platform could potentially force buyers to plunk down larger down payments or pay higher interest rates. That could be problematic for those without a few extra million dollars in their bank accounts.

It appears that the Republican Party, wants to do away with - or at least substantially shrink - both Fannie Mae and Freddie Mac, although the language in the platform was a bit vague. It referred to the business models of the pair as “corrupt” and allowing “shareholders and executives to reap huge profits while the taxpayers cover all losses.” Trump hasn’t yet provided a replacement plan for the current system, which relies heavily on both Fannie and Freddie.

The Republicans have also pledged to stop the FHA from providing taxpayer-guaranteed mortgages to wealthy home buyers. The FHA typically insures loans for low-income, first-time, and other buyers who don’t have enough for a 20% down payment.

The Republicans have stated they want to repeal - or at the very least, limit - the Dodd-Frank Wall Street Reform and Consumer Protection Act. The act provides more oversight of financial institutions in the wake of the housing bust that plunged the nation into a recession.

Trump’s party also wants to get close the Consumer Financial Protection Bureau (or subject it to congressional appropriation). The bureau, created through Dodd-Frank, is charged with protecting consumers against predatory financial services companies, including those providing mortgages.

Dodd-Frank and agencies such as the CFPB are key to ensuring financial markets are kept in check and act fairly, says Edelstein.

However, Republicans allege that its “regulatory harassment of local and regional banks, the source of most home mortgages and small business loans, advantages big banks and makes it harder for Americans to buy a home” in the platform.

No one at Abode2 has a crystal ball to see into the future of residential real estate under America’s new commander in chief. But it doesn’t look like demand from aspiring home buyers will taper off any time soon.

Abode Affiliates

  • Alleyne Real Estate
  • Blevins Franks
  • Coldwell Banker
  • Crane Resorts
  • Monaco Real Estates
  • RDO
  • St Francis Links
  • Unique Home Stays
  • Yoo
  • Worldwide Dream Villas
  • Enigma Yachts Limited
  • Cornerstone Tax Advisors
  • Pedini London
  • Alexander James
  • Moore Stephen
  • Ibiza Transit Express
  • Oyster Yachts
  • Jumeirah
  • Wall Street Luxury
  • Heron Real Estate
  • Edenhurst
  • MG&AG
  • Gama Property
  • Touch Design Group
  • St Edward
  • Ultra Villa
  • Luxury Italian Living
  • Habitat First Group
  • BDO
  • 7Storeys
  • Worldwide Property
  • Dimora
  • Dominic McKenzie Architects
  • Harry Manning
  • Smart Living
  • Isle Blue
  • MAS Marbella
  • Millgate
  • Jersey Finance
  • guernsey-relocations-logo
  • viberts-logo
  • kpmg-logo
  • author-interiors
  • Wilkinson Beven
  • BoConcept
  • Ante Vrban
  • Deborah Garth
  • You home
  • Ra Shaw Designs
  • Caudwell Collection
  • accanto-interiors
  • Fritz Hansen
  • capital-rise
  • jarrods-staircase
  • neil-davies-logo
  • Tina Shone Group
  • Taplow riverside
  • Aimo
  • ns-ceramics-logo
  • Rusk
  • Consilium Expert Group
  • Ben Krupinski Builder
  • Swoffers
  • Guernsey Relocation Services
  • Douglas Graneto
  • Strutt & Parker
  • wilsons
  • MJC Associates
  • plainspace
  • Fine & Country
  • Bramble Ski
  • Penthouse queen
  • Sarco_Affiliate_Logo
  • taylor wimpey
  • cooper-gardner
  • M Design Architects
  • codan
  • Lovells
  • London DE
  • HELENA JORNET FINQUES
  • Prime Lands Group
  • Bellegarde Estates
  • Sinclair
  • Pippa Paton
  • Ecole d'Humanite
  • Benedek Lewin
  • Inspired Villages
  • Huelin Homes
  • Gaudin
  • Lovells Property
  • Racecourse Lodge Logo
  • Paseo
  • Lemay + Escobar
  • Octagon
  • Locate Isle of Man
  • Newlands of Stow
  • Hawksford
  • Holdun
  • Schule Schloss Salem
  • AR Architecture
  • lazaro
  • Sella Concept
  • Blakstad
  • SAREG
  • miller interior
  • Wealth Club
  • Yellow House Architects
  • Designer Touches
  • Zafiro
  • Nicole Murray
  • Scout Boats
  • Emerson Insinkerator
  • Forsters
  • https://www.cullenhomes.co.uk
  • https://www.londonlight.works

Enter your dream destination