Why are people waiting till after the election to buy?

General Real Estate Investing
6yFollow

Why are people waiting till after the election to buy?

Jeffrey Morel
Rental Property Investor · Glendale, AZ · Member since 2020 · 5 posts · 2 votes

I’ve heard some people state that they are waiting till after the elections to invest in property and wondering if it’s a major change whether who wins.

1Reply
211 views

Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y

This is common during any election. If a new President is elected, it can have a major impact on the economy. I think it's pretty obvious to an objective observer that President Trump would be good for the economy, as he has been for the last 3 1/2 years. Biden as President would be a major crap shoot, particularly with some of the plans Democrats have in place for higher taxes, the energy industry, defund-the-police movement, rent moratoriums, etc. Depending on where you live, Democratic leaders will be hiking taxes to help pay for property damage caused by "peaceful protests" during the last six months and there may be more to come, depending on the outcome of this election.

I don't know if I would wait until after the election, but I would certainly be careful about location of investments.

The DIY Landlord Book4.7244 Reviews
WebsiteView Page
52Reply
See this reply in the discussion

60 Replies

Jump to latestLatest
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    This is common during any election. If a new President is elected, it can have a major impact on the economy. I think it's pretty obvious to an objective observer that President Trump would be good for the economy, as he has been for the last 3 1/2 years. Biden as President would be a major crap shoot, particularly with some of the plans Democrats have in place for higher taxes, the energy industry, defund-the-police movement, rent moratoriums, etc. Depending on where you live, Democratic leaders will be hiking taxes to help pay for property damage caused by "peaceful protests" during the last six months and there may be more to come, depending on the outcome of this election.

    I don't know if I would wait until after the election, but I would certainly be careful about location of investments.

    The DIY Landlord Book4.7244 Reviews
    WebsiteView Page
    52Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    I think it is the uncertainty.  If Trump wins, I wouldn't expect any major tax changes and probably a more pro-business climate.

    If Biden wins and the Senate flips, think you're looking at large tax increases, especially on wealthy people like ma-and-pa landlords.  He's already got ending 1031 as one potential change.

    21Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    Because people allow their political biases to influence their investing decisions. They will typically focus on any data that confirms their bias and ignore information that contradicts their world view. 

    pro-tip, dont let those kind of people invest your money.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    49Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    "ignore information that contradicts their world view. "

    Make me happy about Biden.  Wharton looked at his proposals and said ending the 1031 was on his list.

    2Reply
  • Jonathan Barr
    Rental Property Investor · Los Angeles · Member since 2019 · 146 posts · 101 votes
    6y

    I think more then the election.   A lot people just want to wait it out til next year.   They want to see where economy and if covid will continue to have large impact.   How collections and stimulus affect things etc...That's why I actually think right now is good opportunity because there are less buyers for investment real estate.   

    8Reply
  • Karl B.
    Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    6y

    If Biden wins and the Senate goes back to the Dems the long-term capital gains tax essentially doubles to 39.6%

    Of course, this will cause investors to sell prior to the tax change going into effect = large stock market drop (giving almost 40% to the government in taxes because I made a good investment is ridiculous... heck, giving them 20% is still ridiculous). 

    This will cause many to freak out and the media will do as they do and fearmonger. 

    Always remember this quote by Warren Buffett: 'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful'

    When people are scared they will act irrationally. That's when I'm all-in on buying whether stocks or real estate.  

    25Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    Great quote @Karl B. from Warren Buffett. There are some investors that I work with that are a lot older and wiser than me. They have experienced ups and downs and during both they invested. They expressed that as long as you are buying a "deal" you are good to go. "Deal" for the term means different things to so many different people, however, as long as you buy an investment now or in one month and it cashflows and you have reserves you are good to go. These seasoned investors kept the same model and have over 100 properties and had no issues going through the 2008 downturn.

    The McKernan Group4.957 Reviews
    WebsiteView Page
    16Reply
  • Tony Kim
    Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
    6y
    Originally posted by @Russell Brazil:

    Because people allow their political biases to influence their investing decisions. They will typically focus on any data that confirms their bias and ignore information that contradicts their world view. 

    pro-tip, dont let those kind of people invest your money.

    Very well said. I think a perfect example of how people ignore information is to not look at what happened to the economy in the past several administrations. It's also a perfect example of not seeing the forest for the trees.

    7Reply
  • Jeffrey Morel
    OP
    Rental Property Investor · Glendale, AZ · Member since 2020 · 5 posts · 2 votes
    6y

    @Karl B.

    Thanks you. Love the quote

    0Reply
  • Inessa Stysis
    Real Estate Agent · Los Angeles, CA · Member since 2019 · 49 posts · 42 votes
    6y

    As soon as covid started a lot of people were ready to buy up good deals and then the market only increased and grew more competitive. I think everyone who’s been waiting for the next big downturn is holding out hope that the election will cause it.

    7Reply
  • Dan Powers
    Real Estate Agent · Philadelphia, PA · Member since 2020 · 294 posts · 245 votes
    6y

    Hey @Jeffrey Morel, I have come across some people saying that as well. I do not try to involve myself with those matters I simply focus on doing business. If a person loves a property and you both know its the one for them and their only reason is holding out because of the election I would disagree with them on that decision. Everyone always says "if the numbers make sense" but people come up with a million and one reason why to not pull the trigger when the time comes. I agree with @Russell Brazil that people let their political views influence their investing decision, and you could simply analyze the data behind any investment to come to a decision on your own.

    5Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    Moderators note: No political commentary. 

    I can't say what everyone is thinking, but my guess is some of those people "waiting until after the election" were also "waiting until after COVID" and "waiting for prices to drop" and "waiting until the were better educated". The election is just another excuse for people to not take action. No matter which candidate wins, there will be opportunities. There could even be more opportunities if your preferred candidate doesn't win. 

    A good investor uses logic, not emotion to make decisions. You don't have to like the party in control to use their policy to your advantage. 

    25Reply
  • Ana Marie B.
    Rental Property Investor · SF Bay Area, CA · Member since 2015 · 206 posts · 156 votes
    6y

    Reading through this thread and I see people trying to be “PC” as usual. Let’s keep it real, whoever serves as president matters and it will have an impact on the overall economy. That’s why some investors choose the wait and see approach. 

    Free college for all?  Guess whose pockets will fund such lofty initiatives. Definitely not the poor or lower middle class. Oh yes likely it will be investors like those on BP. Yay higher taxes!

    15Reply
  • Jon K.
    Rental Property Investor · Perry Hall, MD · Member since 2016 · 591 posts · 606 votes
    6y

    I'm not. Bought 3 units within the past month. YOLO!

    14Reply
  • Arta Montero
    Member since 2019 · 182 posts · 45 votes
    6y

    @Mary M. Hi Mary, I am from Portland too and wondering if we can chat sometime. Thanks!

    0Reply
  • Josue Vargas
    Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    6y

    @Jeffrey Morel

    Better off looking at the past trends on your market than waiting for the elections.  RE offer/demand change is often slow, even in election time.  So yeah, if any, between now and then, and if you are looking for a great cash deal, you may want to wait until 3 NOV and then compete.  That window will not last long.  I may be wrong, but I think without Government incentives and help, more people will be forced to foreclose, yet the process is somewhat long than a sudden "for sale NOW (on or before Nov 3) - before the bank takes my house" scenario, and rules can very much change soon.  Good luck.

    1Reply
  • Patrick Kool
    Member since 2020 · 2 posts · 4 votes
    6y

    Great question. Interesting reactions too!

    1Reply
  • Sven Broekman
    Member since 2020 · 2 posts · 1 vote
    6y

    @Patrick Kool jo patrick, why are you waiting for after the elections?

    1Reply
  • Patrick Kool
    Member since 2020 · 2 posts · 4 votes
    6y

    @Sven Broekman

    Good question. I'm from Europe so I don't really care

    3Reply
  • Juan Pardo
    Member since 2020 · 201 posts · 118 votes
    6y
    Originally posted by @Nathan Gesner:

    This is common during any election. If a new President is elected, it can have a major impact on the economy. I think it's pretty obvious to an objective observer that President Trump would be good for the economy, as he has been for the last 3 1/2 years. Biden as President would be a major crap shoot, particularly with some of the plans Democrats have in place for higher taxes, the energy industry, defund-the-police movement, rent moratoriums, etc. Depending on where you live, Democratic leaders will be hiking taxes to help pay for property damage caused by "peaceful protests" during the last six months and there may be more to come, depending on the outcome of this election.

    I don't know if I would wait until after the election, but I would certainly be careful about location of investments.

    And I thought people did not speak about politics on these forums...   :-)

    2Reply
  • Juan Pardo
    Member since 2020 · 201 posts · 118 votes
    6y
    Originally posted by @Jeffrey Morel:

    I’ve heard some people state that they are waiting till after the elections to invest in property and wondering if it’s a major change whether who wins.

    Because after an election matters like taxation or the legal framework may change. 

    2Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    @Jeffrey Morel um...who are these people? Some people are buying more than ever...things such as SFs and smaller multis are flying off the shelves in lots of markets, and commercial MF is trading as low as 4%...some people are always waiting and some people are always buying. I don't think the premise of your question is sound.

    1Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    Is this happening in a lot of markets? People are still buying in the market I operate in, I do not see any changes in the weeks leading up to the election. 

    2Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    6y

    They are buying now in Anne Arundel county in Md . Inventory is low , offers are coming in over asking price . Rates are low . Investors cant find deals , they are competing with regular home buyers . i would buy something today , if the numbers worked .

    1Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    @Jeffrey Morel

    Prices could rise if a change in president happens and taxes are increased. If capital gains increases, 1031 goes away, property taxes go up etc - they all punish the owner/landlord. In order for that owner/landlord to receive similar proceeds as they would have seen a few months prior, they’ll price their sale accordingly. Not to mention how rent will increase for the lower/middle class to offset the new increase in taxes/expenses.

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    3Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free