There appears to be a convergence of party platforms and a weird policy-consensus between the candidates. Whatever your leanings may be, it is pretty clear that both candidates are shoving at each other to grab at the center. We want to talk about this and how it affects investment real estate.
First, let’s look at the similarities. Both candidates are bleeding hearts for the middle class. They feel their pain and want to give them a break. Surprisingly, both want to take a bite out of the so-called rich who earn over a threshold – take your pick $250,000, $300,000 or some such number. President Obama wants to increase taxes on this group while Governor Romney wants to limit deductions. Both have said that they want regulations and not the freewheeling, cavalier ways of the past that got us into this mess. Governor Romney would change Obama Care which was modeled after a plan that he created in Massachusetts. How much is he really going to change it? On foreign policy both want to take a pragmatic, diplomatic, pacifist route. Enough similarities to make your mind spin.
What’s the Difference?
Looks like we could vote for either candidate and get almost the same result. Unless we aren’t getting the whole picture. Or the post-election movie doesn’t live up to the rushes. But if it does, here are the real estate investment impacts.
The middle class is the engine of home buying and investing. There is great insecurity among those who are looking for jobs and among those who are underemployed. That leaves the folks who are working. There are a number of them that don’t feel secure about their jobs and more importantly, their ability to find a new one in a reasonable period of time should they lose their jobs. We all know people that have been out there fruitlessly knocking on doors for a while. Economists predict unemployment rates to hang around the current 8 percent or so for a while. Under-employment needs to go down and people need to feel better about their future. So, consumer sentiment has a big part to play. Since things are unlikely to get fixed in the short term, the hope for the future will be the driver for action or inaction.
The President who will instill greater confidence in the middle class will help the real estate investment cause. A lack of hope for the future will translate into caution. The longer people wait, the less the spending and the investment but the greater the savings. Which isn’t all bad. If you do have savings that you want to put to work in real estate, explore HomeUnion.