No matter the winner, about half of Americans are not happy after the election.
Things have been so intense lately, that I wish everyone would take a step back and relax. The votes are in and I am confident that most of the debates over the election will be over by next year. There is nothing more we can do, so we may as well start being kind. If you have the choice between being right and being kind, choose being kind” (Dr. Wayne W. Dyer)
What does this mean for Housing?
I've heard constant predictions of a real estate crash for the past two years. The reason is that we have never seen this long of a stretch in a growing market in this country. Some might say that certain policy decisions from the Trump administration has kept the real estate market healthy. True or not, one thing is for certain, if Biden is the next President, then he won't run things Trumps way and the chips will fall where they lay. There are aspects of the Trump tax cuts that Biden promised to roll back that will affect what even the average Joe can write off on their taxes (i.e. paying more taxes). Maybe he will re-institute some of those things? I hope so. There is also the 1031 Exchange that many real estate investors use to move money from one real estate investment to another without being taxed every time they do so. It is a very strict process by which an investor can sell one real estate investment and put that money right into another real estate investment without paying income tax or capital gains tax on that money. The assumption would be that investors ability to do that does not affect the overall real estate market, but we shall see. Biden would also look to raise taxes of businesses to pay out billions is assistance programs that will help make home ownership easier for lower income people. Again, the assumption there is that raising taxes on businesses doesn't affect the incomes or amount of employees a company has. If Biden does take office, then we should watch closely what changes are made and what the outcome is. It is such a stark contrast to Trump, that I'm hoping Americans will easily be able to judge the results of each strategy.
How is this different than in the past with change of Leadership?
I have not been around long enough to see the cause and effect, but I do think the future will be more clear than the past. America is more divided and the things that separate us ideologically are growing even greater. We had Clinton, who was a moderate democrat compared to Biden today. Then we had Bush that was really more liberal as far as Republicans go. Then we had Obama who was very liberal politically. Trump has been the most conservative President on policy than what I have experienced as an adult. Biden will probably be the most liberal on policy that I will have witnessed.
Let's now pay attention...
If Biden is truly the winner, then let's all just pay attention. We are going from one extreme to another. So, let's judge as Americans what kind of America we want to raise our kids in.