Trump’s Cabinet Means You Should Invest in Charlotte Real Estate

The stock market will always go up eventually.  Historically, it keeps happening.  Most wealthy people (aka the people who make the rules- check out Trump’s cabinet of billionaires) have much of their wealth tied up in corporate ownership (stocks).   It’s almost a sure thing.  If the stock market crashed and stayed down permanently, our country would be in mayhem.  And the dollars under the pillow and gold bars stashed in the attic wouldn’t mean much.  Food would be the main currency.

So why do investors get fearful when the stock market goes down?  It will go back up, right?

After 9/11, the stock market tanked.  Billionaire New York City Mayor, Mike Bloomberg, had a message for his constituents.  He essentially said,” People always ask me for investment advice so they can become billionaires.  I don’t often offer it, but today is different.  Take all of your available money and buy stocks now.”

The Dow dropped to under 9,000 in 2001, and almost to 7,000 in 2002.  It is now over 20,000.  Too many powerful forces have a vested interest in the stock market doing well for it to flounder long.

Charlotte’s population is forecasted to go up 50% in the next 10 years.  All of those people need a place to live.  Statistically, 2/3 will buy and 1/3 will rent.  Housing demand will continue to drive rents and prices higher.

So, investing in real estate in Charlotte is a slam dunk?  As much as investing in the stock market is, especially with a Trump administration.

So that leads to 2 questions:

1. When is a good time to buy in Charlotte?

For long-term holds, anytime really should be fine.  The best time to buy is when the market gets hammered (see 2008-2012 when we didn’t get many buying inquiries, but many of our clients were looking to unload their homes and became reluctant landlords).  For short-term holds and flips, this might not be a great time as competition is fierce for good properties; it’s clearly a seller’s market now.  But financing is easy and historically cheap right now.

2. Where should I buy in Charlotte?

Once again, for long-term holds, anywhere within city limits will work; really the surrounding counties seem pretty good too.  When I was a newbie investor 10-15 years ago, my first two purchases were in areas that were considered “war zones”.  I bought them very cheaply ($27K & $39K) and now they are considered to be in “hot areas”.  Note: I wouldn’t recommend this, especially for newer investors.  The fix-up and tenant issues were challenging and I wished I didn’t own them for years due to the headaches.  But there are plenty of Charlotte houses that are in better areas that will make coveted rentals for years and years.  I’d recommend buying houses that are more expensive (the market is pretty good at pricing houses based on risk).  The homes I bought over $100K were much easier and safer investments that have also appreciated.

Much like investing in the stock market as a whole, Charlotte real estate is a great long-term hold that doesn’t require a large amount of analysis.  And Trump’s cabinet members (and President Trump himself) own a lot of real estate too… 

Happy Investing & Landlording!