In the aftermath of Donald Trump’s monumental election win in the US it seems that more US investors are now looking towards London for their property investments. Estate agents across London have been very quick to highlight the perceived flight of funds from America to London. However, if you take a step back and look at the situation from a distance, is this really the way it will pan out?
Confusion in the USA
There is no doubt that in the short to medium term there will be some confusion and some alarm at the derogatory comments and controversial policies discussed by Donald Trump during his election campaign. In reality he will not be able to push through some of his more controversial plans as he will have insufficient support amongst other politicians. However, he has promised the US electorate that the US economy would be his main focus although there are concerns of a growing budget deficit in the short term.
We may therefore see some short-term volatility in the US and potential property investors sitting on the sidelines.
Flight to London continues
In reality the recent devaluation of sterling against such currencies as the dollar has made London property prices even more attractive to overseas investors. There is some confusion and concern about Brexit and how this will pan out but many investors are taking advantage of currency movements to acquire London property. In light of Donald Trump’s election success some investors may look away from the US in the short term but if he delivers his promises surely this should be beneficial for the US property market?
Time will tell whether investors decide to leave the US property market en masse but it is too soon to call.
Trump the property expert
Amid all the mayhem, confusion, name-calling and controversy surrounding Donald Trump’s election as president of the USA it is easy to forget he has a history and expertise in the property market which goes back many years. For the first time in living history we have a US president with direct experience of the worldwide property market. It is highly unlikely that Donald Trump will not use this experience and expertise to benefit the wider US property market although how he will do this in the short to medium term remains to be seen.
It is also easy to forget that Donald Trump is a businessman and while he may have encountered difficulties along the way he is still here to tell the story. We have a controversial figure who was been there, done it and has managed to split the US population by race and religion. Can he re-unite the USA?
US property market
While some US property investors may well look elsewhere we have seen a deluge of funds into the US property market from the likes of China. The likelihood is that we will see more overseas investment in the US real estate market with investors likely to buy on the “dips”. Donald Trump’s four-year tenure as president of the USA will likely be “lively” but property investors should look far beyond the short term life of a US president.