Best Time to Invest
What do politics and RE have in common?
The election season has wrapped, and with President Trump returning to office, you should be keen to understand how his administration may influence the real estate industry.
I am all about seizing opportunities amidst change, and setting opinions aside, this administration brings with it new possibilities for growth and other things.
Knowledge is power, but without action it’s worthless. So let’s dive in.
The Greatest Time to Invest in RE
Pro-Real Estate Policies and Incentives
Investor-Friendly Tax and Regulation Environment
Anticipated Interest Rate Cuts
Pro-Real Estate Policies and Incentives
We have a president who made his fortune (notice I didn’t put a dollar amount) in real estate, so of course he is going to try and do things that are good for real estate.
History is proof. In President Trump’s first term we saw accelerated (aka bonus) depreciation implemented and I fully expect that to come back. This would be a huge win for investors.
The administration is also expected to prioritize affordable housing, potentially offering new incentives for private and commercial developments like the continuation of opportunity zones.
For investors, this will translate into opportunities to capitalize on government-backed initiatives and expand portfolios into areas supported by federal growth strategies.
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Investor-Friendly Tax and Regulation Environment
Under the new administration, regulations such as national rent controls or tenant laws imposing strict measures are unlikely to advance.
This hands-off regulatory approach provides flexibility for property owners to manage rents and adapt quickly to market conditions.
Now look, some of us may not like relaxed regulations and to be honest I personally don’t love them all, but that does not mean we should not understand what they are, what they are impacting and how they can impact us (both positively and negatively)
Anticipated Interest Rate Cuts
One of the most significant potential impacts on the real estate market is interest rate policy.
With the administration signaling interest in pushing the Federal Reserve toward rate cuts, borrowing could become more affordable. Projections suggest four to six rate cuts over the coming year, which would stimulate the housing market and open doors for favorable financing terms. WRONG, well in my opinion it is.
See I don’t agree with the above projections from the many financial analyst out there.
In fact I think we will see them stop and if we can’t get a handle on inflation, we actually might see a tick back up.
Moral of the story today is to I want you to be aware of what is happening and position yourself to take advantage of it.
Be a little selfish even, because if there has ever been a perfect time to invest in real estate, it is now!
Let’s see what happens,
Jon
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