US Presidential elections: What changes with Biden President?
Leaving out controversy, lawsuits and recount, here are some forecasts on the American real estate market and on the policies of the new President that will influence real estate investments in the United States.
Day after day, Joe Biden's victory in the 2020 US Presidential elections seems more certain.
The new President will take office in the White House starting January 20, 2021, but he has already set to work to initiate the transition.
In all of this, the US real estate market is thrilled to know the direction the new American President will take and, specifically, how it will affect the market and real estate investments in the United States.
In reality, we tend to think that the Presidents, with their work, heavily influence the real economy, both positively and negatively, but the truth is quite different, as the ability of the American President to influence it, for the most cases, is at least indirect.
How is it possible?
It becomes possible as it is the duty of the American Congress to deal directly with the creation of the laws governing the US economy. However, there are ways in which the President can directly influence the US economy and its sectors. The implementation of laws and the control of regulations and trade are the responsibility of the American President. A control that takes place, however, through the choice of secretaries of state and positions such as that of the representative of the chamber of commerce and which therefore can be more or less direct.
Thanks to the electoral result and the newly discovery of Covid19 vaccines, the American real estate market has stabilized. Specifically, with 306 Electors who are giving victory to the Democratic candidate and a Senate composition with a slight Democratic majority, the results hoped for by real estate professionals have been achieved.
Indeed, The President will still need the Republican votes to approve the most important maneuvers. This will ensure that major upheavals do not occur, favoring more balanced economic measures. A more than optimal situation for medium-long term investments in dollars, including real estate investments in the United States.
It will take months before we know with certainty what the actual economic policy of the new President will be, but considering the latest statements by the President-elect and the previous election campaign, we are able to make predictions on what will be known as the Biden Economy.
Recently, the President-elect anticipated the key points of the economic plan for the post Covid recovery. In his speech, there is a strong desire to directly help the American Middle Class by placing it at the center of its policies with the creation of 3 million decent and well-paid jobs to boost the country's economic recovery.
What does it mean for the American real estate market?
A Middle Class with more financial power means helping the typical residential investment tenant in the American real estate market. Americans tend to move multiple times due to study and work and for this reason, they prefer to rent a property rather than buy one. Therefore, implementing the jobs and financial capacity of the average American will help bring even greater stability and continuity to rental income coming from real estate investments in the United States.
Among the promises that instead give hope to the American real estate market, as the fulcrum of the values of the Biden-Economy, is the choice of introducing a tax credit of $ 15,000 for the purchase of the first home.
Why is this important and how will this will be reflected in the American real estate market and real estate investments in the United States?
Undoubtedly, as mentioned above, a greater inflow of funds into the pockets of Americans will lead to greater economic stability with a consequent renewed propensity to buy a first home. This foreseeable increase in demand will further support the growth of the American real estate market.
Why invest in the US real estate market?
Investing in real estate has always been considered one of the best options to secure your savings, but over time, it has become necessary to carefully evaluate the area in which to perform the investment.
The United States is one of the most stable economies in the world and represents an excellent market to invest in thanks to the regulation of the tenant system which provides eviction procedures in the event of a non-paying tenant on average in a maximum of 34 days, for example.
Evaluating all the specifics of the area and property, however, requires a lot of time and sometimes, to reduce management costs and the investment risk, it is advisable to rely on a company like OPISAS, a partner that selects only the best for your investment property, evaluating the development prospects of the area and the immediate profitability of the property thanks to the rent, without you having to worry about how to do every little thing.
To Recap:
The combination of a generally non-revolutionary policy with aid to the middle class will significantly support both rental income and the demand for real estate for purchase, therefore the entire American real estate market.
Moreover, since these policies are financed in the form of debt, a certain weakness of the dollar should continue against other currencies such as the Euro. Thus opening an interesting window to invest in dollars thanks to the favorable exchange rate.
In light of these events, investing in the American real estate market today could be an excellent opportunity to secure your savings, diversify your portfolio and increase your income thanks to the comprehensive management services that OPISAS offers to all of its investors.
Thanks to OPISAS you have the opportunity to invest in the American real estate market with high-yield, simple and safe real estate investments in the United States in the best US locations.
What are you waiting for? Invest today with OPISAS!
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Senate with a slight Democratic majority
