US Real Estate and US vs China Trade War

[Jarib Rivas]

Hello Everyone,

I am new to the real estate business and I'm just very curious what everyone thinks will happen to the US real estate market with this ongoing Trade War vs China. 

I've seen the stock market take a big hit so far this past week (08.01.19) and I'm a bit nervous if I should buy property now or wait after the outcomes of the Trade War? I also have all of my 401K and Supplemental Annuity retirement funds on the US Real Estate Index Trust Fund and I am starting to get a tad worry. I'd be more than happy to hear from you all.

Thanks,

J.R

[Colton Fairchild]

@Jarib Rivas

This is difficult to answer because there are so many real estate markets in the US and each are impacted differently. While some areas are slowing down, there are still many places where you can find deals. Of course, buying now or waiting until the market seems more stable is the question everyone is thinking about. People have been expecting a RE correction for the past 3-5 years now but the overall market has increased substantially. Consider yourself asking the same question 5 years ago and not purchasing a property because you know the market correction is coming eventually... if you are buying solid assets and not over leveraging then you will be okay.

Regarding the stock market, it has been very volatile lately but the S&P 500 is still at ~ 15% YTD return. If I understand your post correctly, your 401k is invested is one specific REIT. I would highly recommend diversifying your investment portfolio... especially as many REITs can be volatile. If you are worried about the current market, I would take some time to evaluate your risk tolerance. See if it matches the investments you have OR if a change is needed.