Interesting times right now. There is plenty of talk and speculation of what President Trump will bring to the American and the world economy.
It will be very interesting to see, however we are already seeing a different Trump to that of the pre-election promises. Thankfully!
Ultimately Australia may well benefit. Americans want to move here in their droves. What does that mean for our property owners? Well you will only see that benefit if you have vacant land. Americans still need to purchase vacant land and build, they will not be able to purchase established property. However any influx of immigration will always push our market up.
Ultimately we have to be aware that interest rates will most likely be on the rise in the future, not straight away, but we need to be prepared.
Interest rates in America are incredibly low, and to get the American economy back on track, the Trump government need to spend on infrastructure. Trump wants to create jobs in steelworks, in real estate in blue collar jobs. To boost the economy they must spend money which will push interest rates up. When their interest rates move up, so will ours. We are not insular we are part of a world economy.
So what should you do? Don't change your long term plans. The value of well located property in Australia is going to keep gaining strength. Just keep an eye on the rates, be prepared that they may move up in 2017. The knee jerk reaction to the Trump Presidency is certainly not a reason to change plans. Stay focused and be thankful that our economy, especially in SA will remain consistent and steady.