25 ways Donald Trump will affect Real Estate Agents

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25 ways Donald Trump will affect Real Estate Agents  

The Donald Trump presidency has been received with varied perspectives and one of the industries that will ultimately be impacted if the proposed policies during the campaign materialize is the Real Estate industry. There are plenty of ways that Donald Trump is tuned to affect the Real Estate agents and 25 of those include:

Lifting compliance costs for banks

Banks have faced high compliance costs which impacted the frequency and capacity to offer mortgages but the proposed lifting is sure to enhance the availability of capital leading to more sales for agents.

Move from mortgage underwriting

The proposed move from mortgage underwriting to normal lending is sure to lead to increased sales by real estate agents as many people gain the power to own homes.

Less regulatory land use

The less the regulations the cheaper it becomes to build homes which will lead to more inventory for the real estate agents.

No zoning burden

There has been a zoning burden that restricts the development of real estate but with the issue being negotiated, real estate agents will enjoy entry to more spaces previously locked out due to zoning.

Cheaper prices for new homes

With the cost of materials sure to drop owing to the investment in infrastructure projects, new homes will become cheaper which will enhance competition between new homes and existing establishments.

Low mortgage default rates

The proposed stimulus to the economy will give potential home owners financial security which will result in low default rates for those taking mortgages.

More real estate professionals

With Donald Trump placing an emphasis on the role of community colleges, more real estate professionals will enter the market to grow the industry.

Update of federal insurance coverage

Homeowners in areas vulnerable to natural disasters will face an update on the insurance setting which will also impact the rates at which real estate agents value the homes.

Mortgage interest reduction

According to the proposed change in the tax code, mortgage interest reduction is bound to take place which will in turn impact the industry by allowing more homebuyers to surface.

Property tax reduction

Property tax has previously been a major factor in the cost of homes but a proposed review of the same is bound to aid real estate agents control the industry.

Exemptions on capital gains

The law governing the gains from selling a home are bound to be reviewed which will mean a new setup that will have set guidelines for the amounts received.

Immigration restriction on home-buying

With the proposed changes in immigration laws, there are bound to be changes on the ease with which immigrants can buy homes which will impact sales margins for real estate agents.

Like-kind exchange tax deferral

This is one area of the law that could be changed which will afford real estate agents some leeway when it comes to selling homes.

Commercial real estate depreciation

The tax reforms are sure to cause a ripple effect on the commercial real estate by initiating a depreciation which may affect the value of commercial premises.

Spending on infrastructure

Increased spending on infrastructure will ultimately impact the number of real estate establishments coming up which will increase inventory for agents.

Home sales slowdown in blue-states

The economically healthy blue-states will experience a slowdown and the real estate agents will therefore face slower sales and increased inventory.

Sales pickup in red-states

With the proposed changes tuned to make Americans have more money to spend, individuals in the red-states where growth was slow will buy more homes which will signify reduced inventory with enhanced closures.

Limit foreign investment in U.S real estate market

There is bound to be decreased foreign investment in the U.S real estate market if the proposed guidelines on trade are to be effected which will lead to real estate agents lacking the inventory to satisfy demand.

Regulation on cost of home

Donald Trump has proposed that the regulation be brought down from almost 25% of the cost of a home to 2% which will encourage investment in real estate.

Chop on regulations for developers

Developers are bound to have regulations restricting their operations chopped which will open up the industry to more real estate establishments.

Lift in home ownership rates

With more millennials moving from renting and having more money to spend, real estate agents will ultimately experience an uplift in home ownership rates.

Shrinking of tax bracket

The shrinking of the tax bracket will mean that buyers will have more money to spend which will impact demand for homes thereby causing a real estate boom.

No taxpayer guaranteed mortgage

This will eliminate the cushion for wealthy home buyers which may lead to real estate agents targeting the middle-income home buyers.

Rise in nominal rent

With an increase in the budget, there is bound to be inflation to cover the deficits which means nominal rent may rise to accommodate the vacuum.

Repealing Dodd-Frank

This will ultimately mean more capital to be invested in the real estate industry which is joy for the agents who will have more inventory and mortgage options for clients.