The US Massive Debt with China and the $20 Trillion Nightmare

OMG: US Debt with China: $1 Trillion + $360 Billion Per Year Active Trade Deficit!

You don’t hear much about the massive US Trade deficit on the major TV networks.  NBC, CNN, CBS, or ABC rarely mention the insidious debt with China and Mexico.  You’d think that a number like $20 Trillion (estimated shortly), $61 Trillion Total Sovereign debt, and a $1 Billion per day deficit would be CNN’s headliner every single day.

It’s unlikely the swamp people will want to help – Pic courtesy of Salt Lake Tribune

Instead, CNN and the rest spend all day attacking Donald Trump.  But then, Trump did say he was going to drain the swamp (including judges).

Unfortunately, Trump is launching another debt-driven campaign which may overheat the economy and grow the debt at more than $1 Trillion per year. Since it’s going into infrastructure spending with private participation, it’s not as toxic as Obama’s debt.  However, Trump did say he wanted all shelves filled with nuclear bombs which is pretty much insanity.




As a result, he’s paying the price in the media for doing good deeds. Let’s hope he gets these things done before he’s impeached for conflict of interest. Because the US is in big debt trouble and Trump is the only one with a solution. And how ironic it would be if the US becomes seriously indebted to Mexico!

Yet, it’s a taboo topic lurking in the dark. But when interest rates rise, this villian will walk through the curtains and into the limelight.  Are China and Mexico taking advantage of the US?  The huge debt won’t go away. Rising interest rates to pay the interest on the debt could get out of control. That could impact the housing market and whether people buy homes.

There’s no bubble / crash in foreseeable future, especially with Trump beginning to take control, and as we see investment funds arrive back in the US. The stock market is at a record pace.  Families and individuals need homes. Perhaps what’s at stake is who will be the landlord and who will be the renter. There’s big money in rental property investment and the Chinese have been buying. However, due to Trump’s actions, the Yuan will plummet and Chinese investment will soon be a thing of the past.




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Forecasting the Economy:  Where Should you Work, Invest and Live in the Next 10 Years?

So why don’t we look at the debt’s source, the numbers, the process, and consider what will happen if Donald Trump does manage to improve the situation.

You’ll find some eye-opening data, infographics, links and commentary in this post. Make sure everyone knows! It’s your civil duty. This post will be constantly updated so please bookmark it and share with your contacts.




Ultra wealthy Chinese. Photo courtesy of Ozy.com

And although Americans assume everything is good right now with “full employment” there’s a big “debt catch” with Obama’s legacy. With $500 Billion overall deficit in 2016 and almost $20 Trillion overall, the spirit, vitality, hope and wealth of the US is persistently eroded. The reason for the media silence is denial, and the so-called economic expert’s inability to make an emotional impact with Americans.  There is no coincidence that the deficit has coincided with America’s slide into despair the last 20 years.

The US National Trade Deficit with China was $4 Trillion since 2000 — and a Growth Rate of 300% in the last few years

“Our nation stands at the crossroads of liberty. Crushing national debt, rampant illegal immigration, insane business regulations and staggering national unemployment are pushing our nation into unchartered territory.”  — James Lankford from Brainy Quote.

US Trade Deficits with The World

Graphic Courtesy of PBS.org

6 of 20 Trillion Dollar Debt is Owned by Foreigners

Some suggest China may even threaten or blackmail the US over trade sanctions by calling in that debt. Doubtful, but how was this debt situation allowed by the US government?

 

Please Share this Post with others. Everyone around the world should know about the US national debt and deficit. This is something no 4 year job recovery can eliminate.




I think it really scares us that we’re staring at $20 trillion in debt, not knowing how our grandchildren will repay it,” says Bob Kuck, a retiree living in a gated community in Sarasota, Florida  — from CNN’s report: Is anyone worried about America’s $19 trillion debt? by Heather Long.

Of all the threats that America faces, it’s the quietest one that could bring the country down. Some may wonder if it’s too late for the US government to do anything about. And before Trump became President, he recognized how miserable the prospect of dealing with this gigantic national debtload is, grow the housing and investment outlook, and bring back good paying jobs. But he took the challenge anyway. It’s either heroic or suicidal.

Millennials and Gen Z’s Will be Paying the Bill

Tens of millions of millennial students having already been wrung through the US college educational system. They spent 4 to 7 years for an expensive education they’ll barely use along with a a whopping $1 Trillion in government backed student loans.  They will be paying for all of it and Gen Z’s will be joining them. But don’t worry, Trump’s got a plan for you.

The purpose of the education system has been to create great jobs for teachers, not for educational efficiency and productivity.

As Trump brings jobs back, the question is whether these stressed out, indebted, wrongly educated workers can step up to the plate. I think we’re all optimistic the kids will bale us out. And what Americans can’t do, you can easily immigrate to fill. Make America Great will be the slogan of Millennials shortly, but they’ll never forget all the debt.




$360 Billion per Year! $1 Billion per Day

The US National Debt with China alone has now grown to $360 Billion per year. In a 6 year span, that is $1.6 Trillion, $4 Trillion since 2000. Just to pay the interest on that debt is a sizable chunk of US GDP.

Donald Trump says he’ll tackle it, but the last time I saw a mouse attack a Lion, the outcome was not favorable for the mouse. The picture the media presents of China is still one of impoverished yet diligent and deserving workers glad to have a job. But China’s not like that anymore. China is rich.

China’s robot factories are growing fast which has raised concerns about millions of layoffs of Chinese workers. Only a smaller number of engineers and technicians might be needed. Now they may have unemployed robots as well.

Chinese workers assisting robots. Photo courtesy of hangthebankers.com

Why Is the US National Debt so High?

The persistent trade deficits are a big reason. Obama/Clinton never talked about it, in fact, Obama spent $8 Trillion in the terrorist aftermath. A good portion of that handout was never traced. They don’t even know where that money went. The debt to China directly is now over $1 Trillion. Now China is able to buy up property and companies here like it’s a fire sale.

Another reason for the debt is Free Trade. While free trade was a theoretically good idea 20 years ago when I was studying International Business and Trade in college, it’s no longer so. Today, it’s a losing business concept for the US.

The fact US investment dollars are going to former third world countries to benefit their economies and creating jobs for them instead of in the US is bad enough. Further, these countries (China, Mexico) manipulate their currencies to keep an ongoing and artificial trade advantage. As Trump suggests, they play the currency markets like Candice Swanepoel plays the fiddle. China isn’t so genius at it though. They just demanded it.

I have to say that I’m saddened that Richard Branson invited Barack Obama to Necker island, and that he’s also asked the UK government to reconsider leaving the EU.  The UK has it’s own massive deficit, which deserves its own blog post. This picture tells it all. The UK had to leave the EU. Brexit was a survival decision not a new vision for the UK.

Game of Monopoly: China Won. Let’s Start Over Again

Graphic courtesy of Wikipedia

When free trade theory was idealized and touted strongly decades ago, they didn’t consider the effect of currency manipulation and the ongoing human rot that occurs with overspecialization. And they wouldn’t admit to where it would lead.




The game of monopoly is the same. Inevitably, one player claims everything. In the real world, countries make excuses for cheating and not being fair.  Worse, countries can specialize themselves out of existance. When countries have no options left, amidst cheating, it can lead to wars.

Choose Your Economic Theories Well

The economic theories of specialization and economies of scale works wonderfully, until the rising countries have all the investment money and a continuous way of beating the falling countries. If the free trade situation persists, countries like the US and the UK will continue to collapse. They collapse because their overspecialized workforce/businesses get caught in trade and technology circumstances, the same way an unemployed worker in Ohio or Michigan finds themselves suddently without a job through no fault of their own and their home is valued as worthless.

When countries grab up a monopoly on technology, distribution, investment flows, jobs, skills, education, etc., it’s unfair. Right now, Americans have limited job opportunities. And should an American want to be an engineer, or other high tech workers, they may have to move to Mexico or China.

Each country should have a well rounded economy for true economic health and prosperity

Some like the Democrats, want this situation to continue forever. The fact is, the skilled, sustainable, good paying jobs must return to the US, if only to pay the national debt.

Further Reading:  http://www.forbes.com/sites/mikepatton/2016/03/28/u-s-debt-is-heading-toward-20-trillion-where-its-been-where-its-going-and-why/

http://nationalinterest.org/feature/why-americas-debt-bomb-wont-explode-yet-12963

http://www.usnews.com/education/best-colleges/paying-for-college/articles/2017-01-31/3-student-loan-reforms-to-expect-under-trump

What are your thoughts on the jobs outlook for 2017, 2018, 2019, and 2020? Is free trade about to transition to fair trade?  Will the housing sector survive the fight with the deficit or is a housing crash inevitable? Is buying gold a good hedge strategy?

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Toronto Real Estate Market Forecast – The Pros and Cons of Homebuying in 2017

When Is the Best Time to Buy a Home?

A Laser Clear View of Toronto Housing — 2017 to 2018

Spring 2017 is almost here in Toronto, and tens of thousands of homebuyers will make the decision to buy a home. Yet buyers are confused, not because it may be a housing bubble, but because they can’t picture the value clearly, perhaps in numbers.   

The question of whether to buy a home isn’t about seasons, and housing type, or even the neighbourhood. There’s more important factors to considers and you should weigh your pros and cons carefully.

But for some Toronto residents, do they even have a choice? We all have to live somewhere, and it doesn’t seem there’s enough homes to go around.

While Canada is suffering its worst ever performance in attracting foreign investment, foreign purchase of homes here has been high. Foreigners are desperate to park their money somewhere. With that, Vancouver, Kelowna, Toronto, Mississauga and even Montreal have seen their housing markets explode in price. Many of these properties sit idle and empty, waiting for a quick flip.




Yet our hyperactive housing market hides a big secret — our economy is not so hot.  If not for the US revival occuring now, you’d have to say Canada’s future is very bleak — hence the lack of investment. Foreign investors are giving Canada a big thumbs down.




Vancouver Danger Signals

When BC applied its foreign buyers tax, it effectively killed the housing market in Vancouver. And with Toronto booming and its prices continuing a rocketing pace, will the Ontario government take similar action? While TREB might describe the market as balanced, it is a precarious, bubble like one where an irreversible slide might grow to a crash. Is this really a good time to invest in Toronto homes? Let’s look further.

Screen Capture courtesy of Teranet and the National Bank of Canada

The Key Role of Foreign Buyers in Toronto Real Estate

Foreign money may well be the key to Toronto Real Estate Market in recent years. Canadian investment in US property has fallen dramatically because of the sagging loonie, and perhaps due to new border restrictions expected by the Trump government. Canadians will now only be able to afford to buy in Canada. And many are selling their US properties to cash out their windfall. With that, they’ll likely be competing for GTA homes.

With the loonie so cheap against the US dollar, properties in Toronto, Mississauga, Oakville, and York Region look very inviting to Middle Eastern, Chinese and US buyers. Political and economic turmoil may well see foreign investors tune into Canada as a safe alternative to the US. Toronto real estate will be their first choice.

The Toronto Real Estate Board just reported another record month of sales on the Toronto MLS for January, and there is no sense or data to suggest condo and home prices won’t keep climbing.

8 Fundamentals of Rising Home Prices to Look for:

1. limited housing availability and people have to live somewhere
2. continued staunch refusal of homeowners to sell their properties
3. low mortgage rates rising only slightly
4. influx of foreign investment money from the Middle East, Russia, Germany and China
5. strong US economy set to spill over into Canada
6. high numbers of Millennials looking to buy their first home
7. condo rental prices are high with low availability meaning a sizble pool of potential buyers exists
8. immigation volume into Toronto is high thus soaking up rentals and creating more buyers from across the globe

The above fundamentals speak well of home prices in Toronto. As long as a US economic disaster doesn’t occur, the Toronto market looks okay. The question then becomes one of do you really want to buy vs rent? Can you afford repairs, taxes, and to commute to this location? Should you buy now so you can lock in at lower mortgage rates?

Worries on the Horizon

However, there is the negative side of the coin. Canadian debt loads are very high, bordering on crisis levels, and should interest rates rise, these same people may face foreclosure. If mortgage rates rise, few buyers will be able to buy at today’s prices. If prices are too high with a threat of a housing crash, fewer people will willingly take that big risk.

Screen Capture courtesy of Politiscope

The biggest factor for a housing crash or continued growth comes from the US. The repatriation of jobs and business investment back into the United States is the biggest news story of the last 3 decades but there’s worries Canada might be shut out.




Note: Vancouver’s Market has Stopped Rising but Hasn’t Crashed

If the US can carve away at its monstrous trade imbalances and bring back the American middle class, the effects on American wealth will be dramatic. We’ve all seen what this wealth has created in Dubai, China, and Mexico. When all that wealth returns to the US, it will spill over into the Toronto Real Estate market.

The Canadian economy, particularly Toronto’s is intimately tied to with the US, both parties would be devastated by a break in trade. But Donald Trump may have little intention of alienating Canada, even with Justin Trudeau at its helm. The biggest threat we face is Donald Trump’s dislike of Justin Trudeau.

Trudeau’s lack of sympathy and joy for the great American revival will gnaw at Trump’s government.  Canada may receive a weaker bilateral trade agreement, which Trudeau will have to negotiate. It could be much worse than the softwood trade has been.

The second biggest factor will be the lack of housing availability. Ontario’s governmental regulations on land development near Toronto is crippling growth. Its plan to intensify development in certain cities such as Markham, North York, and Mississauga will supercharge prices in those areas. Ontario’s high flying tax increases will further put upward pressure on house prices and make home ownership more costly.




Statscan reported job growth only in Ontario, with 20,000 new jobs. This followed on the heels of last month’s 74,000 new part time jobs. People working part time or with low wages can’t buy homes. The future lies with a growth in Canadian exports (the low loonie didn’t make that happen, likely because other countries are manipulating their currency downward for persistent advantage).

With demand continuing right through the winter, it’s hard to believe it won’t be a record spring for the Toronto market. The anticipation of the great American Revival will play increasingly on the psyche of hopeful buyers and those who would like higher paying jobs. It’s this anticipation that will have the greatest effect on where anyone will willingly purchase an average $600k to $1.5 million dollar condo or home.

It takes courage to buy a home, and courage should be built on a systematic pros and cons assessment of real estate investment.  I hope your analysis gives you the right outcome. If you’re looking to buy in the Toronto area, please visit my Toronto homes for sale page.

Further reading:

Forecasts of political intervention by Canada’s biggest banks: http://business.financialpost.com/news/property-post/canadas-biggest-bank-warns-of-possible-cooling-measures-coming-to-toronto-housing-market

Best time to buy a home: https://www.newhomesource.com/resourcecenter/articles/smart-time-to-buy-a-new-home

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Real Estate Investing – Where to Invest – US Stock Market Forecast 2018

Where to Invest in 2018 – Real Estate, Stocks, Gold or Cash?

Looking ahead  to 2017 and wondering where to invest?  US stock markets have had a fantastic run the last 6 years, with the DJ hitting 20,000. But is this the end of it?

baldeaglesmall
Photo courtesy of baldeagleinfo.com

The real estate market had a sharp rise these last few years, but has it topped out too? Could they both crash or soar like an eagle? We know the past, but how are we on forecasting the future?





Choosing between property or stocks might seem like choosing between wine or cheese, ice cream or pizza, or, tofu or sushi, but after you read this post,  you might find that one is more financially nutritious than the other. And if both markets crash in 2017, well, if you buy a house or property, you still have something!

To ensure you make a good investment decision, you can read up on the advantages of buying real estate, to whet your appetite for the interesting video interview with investing guru Grant Cardone at bottom.

Like most real estate investors or stock market investors, you’re wanting to beat the averages and pull off a big win in 2017. And who can blame you? If you’re open minded and smart, you might double or triple the ROI anyone else is earning. This post not investment advice but rather a wake up to the strength of real property in the best zip codes.




Let’s take a quick look at real estate investment opportunities which might produce exception returns in 2017 compared to the stock market of 2017, which has pretty well peaked.

realestatevsstockmarket
Screen Capture courtesy of thescallingroup.com

US Stock Market Forecast 2017

“For 2017, J.P. Morgan anticipates geopolitical risk stemming from Europe and the Middle East as well as questions surrounding the new policies from Donald Trump’s presidency will permeate markets. Still, the firm also estimated in the report that the S&P 500 Index will surge 8% to 2,400 by the end of 2017.  A stronger U.S. dollar and higher rates pose risks for stocks in 2017, as these factors can affect price-to-earnings ratios, emerging markets, the housing market, and U.S. equity groups such as multinational, domestic manufacturing, and bond proxy companies, according to JPMorgan.  – from a report on the WSJ.com.

.

chipjoanna
Screen Capture courtesy of Magnoliamarket.com

Where are the Best Opportunities and Cities to Invest in Real Estate in 2017?

If you read my post on the best US cities for real estate investing, you know that some cities offer a 30% return right off the bat. Choosing the right city is a big part of the profit equation especially if you’re modest investor. The other parts are which specific types of properties to pursue, whether there’s plenty of millennial buyers in the area, and which types of upgrades bring the best return.

Home flippers will want to choose single detached homes especially where there is an income apartment built in to the property.  Is San Francisco or New York or Los Angeles or Waco a good bet for a solid flip? Ask Chip and Joanna as I’m sure they know that market well enough. For other markets, there are sources so don’t shy away from a little research.

Pick all the right property buying variables intelligently, and you raise the likelihood of making a lot of money on your investment. Take a good look at rental income properties in Los Angeles, San Jose, Bay area and San Francisco simply due to the persistent high apartment rentals prices. It doesn’t look like there is a solution for that overheated market. With no new construction, current rents can only go higher.




Is Stock Market Investment a Good Choice?

Take a look at how the Dow Jones has fared since January of 2015. If it wasn’t for the recent Trump bump up, the market barely progressed. And the stock markets were all aglow about record prices. Well, they also said Trump would ruin them. After a lot of turbulence, it looks like investors believe Trump will be good for all the big corporations and perhaps economic growth in the US.

The stock markets are at all time highs with nowhere to go. The percentage gain on current prices will not be good. Of course, you may find specific stocks to gamble in high growth industries, but it all seems like roulette to me. Contrast that with real property in some of the hottest upcoming cites and what you could do with that property and now you have incredible potential for profit. And could all those people on HGTV be wrong?

The Trump rally will continue into the early part of 2017, then drop off as the Fed hikes interest rates more than the market expects and sentiment shifts, Goldman Sachs predicts in its forecast for the coming year — Goldman Sachs

djchart

And here in the last 12 months on the Nasdaq, we’re seeing flat growth in prices. If Trump hadn’t won the election, we would be seeing a flat line right across into 2017.  If the Trump euphoria wears off and he can’t create the economic results he says are possible, you might see this curve heading back down to the 4500 mark.  Personally, I think Trump’s efforts will provide much improvement, but that improvement might be more visible in the real estate market. That’s why in 2017, investing in real estate is where everyone is headed. That transfer of cash to the property sector should create some stellar returns.  Discovering the best cities to invest in is half the battle.

Has any small investor ever gotten rich off of dividends?

nd2016

So the tale of the stock market curve is really all you need to know.

Another important benefit of investing in real property, especially for house flippers, is that you’re more personally and emotionally engaged in the process and outcome. Stock market investing is passive and you can do nothing to help the performance and ROI. With real property, you are able to find ways to help yourself succeed.  Wether it’s flipping or living in an income rental property, you can effect the performance of that investment. Let’s hope you make the right decisions and hire the right people!

Hear what Grant Cardone says about real estate marketing for next year.

Further resources on stocks vs real estate:

thebalance.com/making-money-from-real-estate-investing-357984

inman.com/2016/11/22/zillows-6-predictions-for-the-2017-housing-market-under-trump/

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Is this the right year to invest in rental income property?  Find out more about the best investments in 2017 including investing in real estate and investing in the top real estate zip codes.

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Donald Trump on the US Economy, Reform, and Real Estate Market

What Donald Trump Said

2 months ago, I forecasted that Donald Trump would become the next President and sure enough, at the last minute, he pulled it off. I mentioned that Americans appeared tired of economic stagnation, debt, minimum wage futures, political lobbying and corruption, and a lack of control over their own lives and in 2017 they would have a new president to make the changes.

But even as we inspect what New York’s Donald Trump has said he wanted to do, the real matter is how he could make change in jobs, energy, real estate development, and trade.
Yet Trump is a hotel and real estate magnate, so this has to bode well for the travel and real estate sectors. Trump is all about real estate development. Trump stated he will change the tax brackets (lowering taxes for some) so they have more money for a purchase.




Once investment and laws are changed, the US should see an honest revival of its economy and as momentum grows over the years ahead, it makes sense that fairer trade and a made in America emphasis will see jobs and investment come back to the US. It’s doubtful that China and Mexico will be devastated and I might add that Canada may follow the same road to bring jobs back from China and Mexico. Those who have lost their jobs to foreign companies know what’s been happening at a real life and emotional level. Once jobs return, the euphoria will begin.

Whoever actually voted for Trump, their decision is one that’s put rich multi-national companies, billionaires, and even pampered Hollywood stars in their place. Clinton and the Democrats had no real plan to boost the economy, create jobs and fix the trade deficit problem with China, Japan and Mexico. I thought it was a no brainer — Trump was the people’s only hope despite the thrashing the media gave him. None of it mattered because Americans are determined to bring back prosperity.

Is 2018 the best year to buy rental income property?  Find out more about the best investment opportunities in 2017 including investing in real estate




Everyone is wondering what a Donald Trump, president elect, lead government will look like. What did he say about housing and home ownership anyway? And how will his policies actually support small and medium-sized US businesses?

Share this post about Donal Trump with your friends and family on:

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A good number of people are still upset right now that the much hyped new President got in. He promised to drain the swamp in Washington, fix trade deals with China, Mexico and Japan, and help people buy a home. And in San Diego, Los Angeles, Orange County, San Francisco, just as in New York City, Miami, Seattle, and most urban area, people have given up on the idea of owning and having equity in a home. That American dream had died.

homeownership
How do You Feel about This Statistic on Home Ownership?

Here’s a key statements and quotes from him (if you’re willing to believe his statements):

American homeownership rate in Q2 2016 was 62.9% – lowest rate in 51 yrs,” Trump tweeted July 30, 2016. “WE will bring back the ‘American Dream!”

It’s not hard to believe that homeowners in Los Angeles, San Diego, San Francisco are low. Not much of a controversy there. How many millennials can afford a Million dollar property?

If his heart and head really are into making home ownership a reality for those in California, Texas, Florida, and New York and cities across the US where prices have gone bonkers, mostly due to a lack of development land. Trump’s bombastic style will fade in importance as he’s forced to get down to work and fix the American economy. There’s mention we’ll have panic and high global prices yet they’ll likely go down as manufacturers become more concerned about getting their products to their main customers — US consumers.




“I’m going to bring jobs back from China, Mexico Japan, Vietnam. They are taking our jobs. They are taking our wealth. We have $2.5 trillion offshore. We’re going to bring that money back. You take a look at what happened just this week, China bought the Chicago Stock Exchange. Nabisco and Ford, they’re all moving out. We have an economy that last quarter didn’t grow. We have to make our economy grow again” — Source: 2016 CBS Republican primary debate in South Carolina , Feb 13, 2016

Trump also has a lot of power now yet even the experts don’t know how he can improve the economy and boost the real estate and housing markets.

“A few years ago, Moody’s, the financial investment agency, calculated that every $1 of federal money invested in improving the infrastructure for highways and public schools would guarantee $1.44 back to the economy. Infrastructure investments have one of the strongest direct economic impacts.”  Source: Crippled America, by Donald Trump, p124-5 , Nov 3, 2015

“My policy is going to be something that’s going to set the country back right. I mean, one of the big things is we have to take back jobs from China.”  Source: Meet the Press 2015 interviews of 2016 presidential hopefuls , Aug 2, 2015.

So much for election promises and public political statements. We might want to visit his website and then calculate what impact taking jobs back from China, India, Japan, and Mexico will do.

https://www.donaldjtrump.com/policies/trade

https://www.donaldjtrump.com/policies/energy/

https://www.donaldjtrump.com/policies/economy/




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10 Ways to Make a Vivid, Lasting Impact on your Prospects

10 Ways to Make an Indelible Impression

wow
Courtesy of DeliveringHappiness.com – Check out their excellent post!

How many times in your life have you tried to persuade someone to do something that would be good for them, but they wouldn’t budge? And what happened when you tried to convince a homeowner to sell their house and use you as their real estate agent? A stubborn silence. And when you gave an inspirational speech at your club ending with grand applause, you discovered no one actually acted on your uplifting plea. Humbling.

To create change and build intent – you must overcome the prospect’s inertia and make a strong impact




And as we explore in this epic post on making impact, the impact has to be an extension of your value proposition to really make an indelible impression. Right now, your poorly designed, uninspiring, unhelpful website, lack of freebies, quality content, persuasive videos, and missing home and condo listings gives the wrong impression to visitors. That’s the other side of impact where you leave a crater of indifference.

The buyer doesn’t want to be sold; the buyer wants to be wowed – From Salesforlife.com





I’m not trying to be disheartening. Believe me, I know how difficult it is to make an impact and WOW a prospect. Everyone seems jaded and overwhelmed with limitations.  And here’s the kicker, that just because you know how, doesn’t mean it will happen — it will take money, expertise, hard work and action.

Think about the reasons you’re not phoning me right now to hire me to create a boatload of leads for you. Why? Because I haven’t made an impact with my brand image and unique value proposition. You’re aware of a certain set of solutions from providers you understand. It’s my job to open your mind to new possibilities and insights. Until I change your mind, you will never respect me as the top, free, organic lead producer. Whether it’s clients in Los Angeles, Toronto, Boston or Vancouver, they all want to be wowed and have a great experience with you.

We can look straight to Sir Richard for inspiration on how to be bold and make an impact. Why do you think he's a billionaire?
We can look straight to Sir Richard for inspiration on how to be bold and make an impact. Why do you think he’s a billionaire?

It’s very competitive and some of our competitors have $20,000+ websites, huge PPC budgets, content strategists, writers, videographers, and big money partnerships that simply blow us out of the water. 6 years ago, our current approach would have dominated. Today, we look like we’re driving an old Ford Model T down a Dubai freeway. Our pride takes a hit for a while but when you read this post, you’ll begin to see how you can upgrade your approach to fascinate your prospects. My goal is to make you so unique you won’t have to be concerned with competition.




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Impact, Convince, and Move to Action

Getting people to do things is not easy. Sort of like pushing a 50 ton boulder off of your front lawn. The ground and the weight conspire to keep things as they are. That’s why so many bosses prefer to use threats when they want to “inspire” action. It’s a time-tested method that’s still popular in these enlightened times:)

Breaking static inertia is one of the top tasks of sales conversion – treat it like a science that you must apply with artistic flair — your words, stories, imagery, tone of voice, and facts are your paint brush.

Your goal and vision: you need to increase sales and more importantly to build and sustain your career as a realtor, broker, or mortgage agent. But don’t expect to convince with a single need or tactic. I’m going to help you see much deeper and give you the 10 best ways to generate impact on your prospects.  None of them want to budge, which is why pretty pictures of homes, and trite descriptions of the wonderful neighborhood never work.  But with knowledge and insight, and the best 10 levers to apply force, you’ll get the boulder moving as fast as you want.



The first thing to do in this process is to clear your head. Forget what you know or don’t know. It doesn’t matter. Stay away from people who are stuck with their head in the sand and lack motivation, and associate with people who are progressive and have few limits. This will get you in the right mindset, and mindset is important. You can’t sell progress and lifestyle unless you truly believe it.

What is Client Inertia Anyway?

The power that keeps your prospects stuck is called inertia. It’s the result of a lack of confidence, fear of loss, and a lack of goals and vision about the future. People stay stuck because they believe they’re better off where they are. It’s simple pain/pleasure stimulus. They’re avoiding pain even if there’s decreasing pleasure in their lives. They could be bored, unfulfilled, and their neighbourhood or city just doesn’t do it for them anymore yet they stay in their comfort zone. How about you moving their comfort zone by using well placed emotional levers?

Some scientists say inertia is a physical force, but it isn’t. It’s the simply gravity, the weight of their lives with responsibilities, values, concepts, experience, and self-doubt. Sometimes this boulder doesn’t move because there are smaller rocks or shims stuck underneath that further prevent movement. People are like that too with all these little things preventing growth and commitment to a better life.  So how do you create forward motion when the inertia seems overwhelming?  You use levers to apply against each of the reasons they’re stuck. So let’s look at their excuses/reasons:

  • I’m comfortable right now and contented
  • My kids and wife and extended family prefer that things stay as they are
  • My workplace is within reach
  • Our home is perfect for us
  • I have many friends and acquaintances in my neighborhood
  • My knees hurt from the stairs but another 5 years won’t kill me
  • I understand this neighborhood
  • I can’t see any reason for changing
  • We make enough money and we get by
  • We’re waiting for the kids to leave school in 14 years
  • This is the best neighborhood in the best city
  • Other homes are too expensive
  • No one would want to buy this place
  • The economy and housing market is going to tank soon
  • We’d rather buy some new, prestigious luxury cars
  • Our kid’s school is the best in the country
  • We don’t like starting over with nothing
  • Moving is a big chore that we can’t do
  • We don’t need a big yard with room and freedom
  • We can’t afford to move
  • Our kids are struggling at school but they love their friends and activities

Finding the Right Leverage Points is the Key

Getting any forward motion or commitment is good, but it may not be the right power source.

There are hundreds of reasons (excuses) why people will stay put and not do what they should do. So inertia is a multidimensional defense against change. You could solve a bunch of things and they still won’t budge.  

To get over inertia, you need impact. Impact is an emotional response that creates immediate intent. When Wow a prospect, it fills them with a need to do something and they jump off the fence and begin a process to improve their lives.

You’ll inspire fascination, awe, surprise, joy, confidence, belief and intent that creates motion. If you’re good at this you’ll get immediate action. Sometimes, they’re just waiting for you to Wow them. Other times, they’re unknown strangers you can’t reach.  (That’s why your SEO and social media outreach are so important.  Have you heard of social media listening, and predictive analytics? There’s plenty happening in the digital real estate sector you need to open up to).

The Basic Causes of Client Inertia

impactcloudBut before you go ahead and stimulate that intent in your prospects, you should know what the inertia factors are and what actions you need them to take to choose you as their realtor. The end goal isn’t to sell their house, it’s to hire you. When you solve several problems, they begin to see you as the only realtor who could help them. You’re making impact through multiple contacts and successes and that’s good branding that will get referrals and repeat business.

And by the way, this is a battle requiring strategy, tactics, resources and other tools of persuasion. We don’t just want to persuade. We must convince and generate motion. Get out a big notepad and start jotting down all their characteristics and the excuses they gave about why they’re not doing what they should do. Excuses are a gold mine of information (e.g., our lives are great here and there’s nowhere else we’d rather live).



What makes people willing to listen to you and commit to forward action?

  1. You give information that confirms their doubts about them staying put where they are
  2. You give information they’re missing that causes them to reevaluate something
  3. You give information that makes them uncomfortable with their status quo
  4. You make them realize they could lose out on a significant opportunity to gain wealth or a better life
  5. You make them aware of something that will make them feel happier and more secure
  6. You present something that could make them look smart or create more wealth
  7. You make them aware of that their loved ones aren’t doing so well where they are
  8. You make them aware that their neighborhood and schools aren’t so great
  9. You present an issue that has a deadline they must deal with
  10. You create an inspiring image of their life as it could be
  11. You were transparent and open talking about how such changes have benefited your life
  12. You impressed them with the importance of having something they don’t have now
  13. You shared stories of people who are respected because they acted and progressed
  14. You presented images/stories of people who are happier because they sold their old house
  15. You made their old house sound undesirable with a downward value and high upkeep
  16. You made it seem important to keep up with everyone else and your story about the ones who fell behind had certain details they could immediately relate to
  17. You painted a beautiful picture of their new life that has everything they need so there’s nothing to be afraid
  18. Your story about how the status quo creates ill health, lower income, stale relationships, increasing stress and how only progress creates security and happiness

Avoid Activating the Left Side of Their Brain

Blatant, direct anecdotes and statements will fail. Instead, as you know because you’re a sales pro, that stories and analogy are better. Only details that backup the stories are used.  Appeal to the right side of their brain and bypass the critical left side. Develop your stories and keep away from details because details activate the critical left side of the brain which is rarely your friend. Treat the left side of their brain like an undesirable associate of theirs who is crashing the party. Big picture clarity, humor, fun, and proof of successful outcomes will keep the cynical part of their mind from ruining the party.

Advertisers believe constant repetition and persistence are keys to sales success. They aren’t. The better your strategy the fewer face to face meetings you’ll need to get their wheels turning. If it takes you 15 meetings to get the sale, your technique is not good. You need upgrading or a very good website to help you out with better qualified leads.

Here’s a little bit of theory for your new prospecting and sales persuasion strategy:

The 10 pillars of the status quo and where you’ll need to make an impact:

  1. Security – reliance on current friends and family
  2. Convenience – time management and access to resources
  3. Familiarity and idealization of their current situation
  4. Fear of the unknown – uncertainty about the economy and other people
  5. Lack of confidence – insufficient self-directedness and belief in a better life
  6. Lack of resources – insufficient money, connections, and information
  7. Lack of inspiration and vision for their future – no goals or wish for a better life
  8. Lack of energy and enthusiasm – a life wrapped around inertia
  9. Pessimism, conventional thinking, and strong belief in limits
  10. Fear of loss which reduces their self-esteem and self-respect

What are the top 10 best ways to make impact and generate immediate intent and action?

Refer to our list above and apply an action you can take to remedy each. Don’t stop with just one because you may need to nail all of them to get action. Find out what their most important desire/need/wish is and present something awesome that blows them away. Your conversational skills will get a workout and you’ll enjoy the power you get from leveraging every persuasive asset possible. You’re going to move mountains.

Security – Interest them in a neighbourhood that’s closer to family and friends yet provides potentially more good stable friends and opportunities for family gatherings where relatives can visit. No negatives, just more positives.

Convenience – a home that’s closer to their work, recreational activities, kids schools, shopping, and highways. Tell them how much time and money they’ll save and how that will ease stress to give them more quality time.

Familiarity – highlight all of the similarities of their new neighborhood/town to their old one and emphasize where it’s better with the features they really like (parks with walking paths). They idealize their old situation, so they’d have to agree that this new location is better and just like home. Show them a drone aerial video of the new neighborhood including some of the recreational facilities or other relevant attractions there.

Fear of the unknown – prepare research on home values, schools, job trends, migration and demographic trends, neighborhoods, and include books, websites, and discount offers from businesses in the new neighborhood so they’ll visit it. Tell them what’s compelling about the people in this new neighborhood.

Lack of confidence – learn of their accomplishments, what they changed and overcame, and what things might be limiting them.  Take them for a drive to the neighborhood. You can talk casually and discover why they’re insecure, or lack belief in themselves. Just having someone to listen might loosen them up to new beliefs about themselves. Ask non-threatening questions and let them talk themselves into it after seeing a picture of a more confident successful person in the new location.

Lack of resources – if the new location offers better access to jobs, information, connections, and other key resources, they will be compelled to agree that it could provide new resources they value.

Lack of inspiration and vision for their future – tell stories of other people who are living inspired, meaningful, exciting, and accomplished lives and who realized them by pursuing and striving for important goals. If they have little motivation, you need to present a credible goal for them, perhaps something they weren’t even aware of, which will surprise them.

Lack of energy and enthusiasm – when you challenge their beliefs about limitations and show how others achieved their goals by moving toward the things they truly want, you’re lifting the oppressive weight of limits they’ve written in stone. The more they hear about or read about others who are doing what they want to do, their spirit will come back to life.

Pessimism, conventional thinking, and limits – learned and self-imposed limits are hard to overcome so you need to shock them into awareness of how they’re their own worst enemy. Ask them about their past and how they progressed to where they are now, and ask them about alternatives they could have chosen and whether they believe they’re living their ideal life. Connect their conventional thinking to the worst part of their current life, and demonstrate how people who live without limits are more secure, happy and optimistic. Pessimism is painful, so give them a reason to let go of it.

Fear of loss – change means letting go of something that doesn’t work anymore for something that will produce more happiness, value and comfort. If the relevant vision of the future you help them create is strong enough they will begin to let go. Tell them they’re just moving and their old stuff and friends are still nearby and that the move will make them a special new person to the old crowd.

You’re not really selling a house or buying one, you’re helping them change the quality of their lives. That means finding the right home or condo in the right neighborhood so they can easily see they’re transitioning to a better life.

Now if you’re a smart realtor who has already developed a database system that matches up all these characteristics of prospects to houses and neighborhoods that suit them, I want to hear from you because you’re on the ball. That’s one powerful resource that would make all the other selling tasks much easier.

If some of the above impact tactics are not for you or can’t be done, put more effort into the ones that can work for you. 3 of them might work well enough, but once you get some movement in the client, you’ll likely find you can use the others well too.

Here’s WOW marketing expert John Dwyer with his views on how to attract more clients using Wow factor.

I hope I’ve loosened up some of the self-imposed limits that are stopping you from really ramping up your sales effectiveness. And I hope I can help you apply these principles on your website and social channels. A new IDX website, convincing informational blogs, and engaging social conversations are key resources online and you’ll become more confident with them as you use them. And you’ve got my help giving you awesome presence on Google!

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I bring them in and you convert them. We’re a team.