Is There Life After Trump?

Surelock Network Auctions November Newsletter! It’s a tad later than usual because we were waiting for the result of the US election – as we’re sure you were, too. Donald Trump is the US president elect which was shock to many. Although, following the vote for Brexit, any opportunity to vote for change has proved popular with the electorate. Now that we do know the outcome of the US election, we’re considering what impact the surprise result might have on the UK.

Is There Life After Trump?

In the past 12-18 months, Donald Trump has attended many rallies, made lots of speeches and hit the headlines for different reasons – few of them complimentary. But now, he’s the US President elect and will lead the world’s most powerful country from January next year.
While he has spoken in-depth about making America great again, he’s also outlined some plans that looks to many people to be unwelcome and even racist. So, what is a Trump Presidency going to actually bring to the US and the global economies, financial and housing markets? The answer to that is currently, completely unknown. And, that lack of knowledge will add to the uncertainty already permeating the UK in particular, due to Brexit.

Trump’s Lack of Political Experience Could Benefit the UK

Because Trump lacks political experience and has made many unpopular claims in recent months, there are some expectations that the UK’s housing market could actually benefit from the uncertainty his election is expected to bring.

Property is a tangible investment – when you buy a property you own a physical item which can be held onto, improved, rented out or sold. And, despite the uncertainty over Brexit, the London property market is still considered a ‘safe-haven’ investment by many. And it’s that label that will likely be remembered by investors who are spooked by the uncertainty Trump’s election is bringing to US and global financial markets.

It doesn’t just start and end with Prime London property, though. Because the UK appears to still value inward foreign investment, despite the vote for Brexit – think China and the many talks with overseas political ministers, particularly trade and investment related ones – current prospects for the economy and jobs market here aren’t quite as bleak as they were.

The US, however, is very much in the dark as to how much of what Trump said about reducing imports and increasing US manufacturing he really means, or can achieve. That makes the UK a more attractive an option, particularly as UK Chancellor of the Exchequer Philip Hammond has made clear his view, that the UK economy needs foreign investment and good trade relationships to thrive.
Against that backdrop and the UK Government’s apparent willingness to find real solutions to the housing crisis, Buy-to-Let (BTL) investors may be tempted to return to the market after taking a bit of a breather since April.

Trump’s Win and Brexit Highlight Appetite for Change

Voters in two democratic countries have made it clear they want a change in the way their respective countries are run. For the UK and the US, the future is unknown, but that lack of knowledge can create opportunities too, for everyone.
It also means that asset prices – stocks and shares, property, bonds and other investments – are likely to move around quite a lot. When this happens, there’s always an opportunity to make a purchase when prices dip and sell when they rise again.
So, even though the UK property market will probably benefit from the uncertainty in the US, and prices could rise. There’s also a chance – particularly at auctions – that you can catch a good day when other buyers are feeling uncertain too.
Amid all this uncertainty, make a clear decision to do your research, view that likely property and attend your local auction. Your action might just be rewarded – like Trump’s was!

We hope you enjoyed Surelock Network Auctions’ thoughts on the issues discussed in our latest newsletter. If you want to keep up-to-date with Surelock’s auction dates visit our website and to keep abreast of our news and views, take a look at the blog section.

We welcome any comments on the points we have mentioned, or any questions at all, even about a property you are interested in that isn’t listed at one of our auctions. Additionally, if you want to share your own views on another topic, please contact us. You can get in touch by responding to this email, tweeting us @KhalidAuctions or commenting on the blog section of the Surelock Network Auctions website.

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