Is The Real Estate Boom Due To The Trump Effect?

posted in: Economy | 0

Real estate is an important factor contributing to a nation’s wealth. This comprises around 6% of America’s gross domestic product (GDP), one of the main gauges of a nation’s economic strength. Recently, New York Federal Reserve has released that USA’s economy has reached an almost 3.2% increase in the nation’s GDP in the fourth quarter. An increased GDP, of course, signifies various things, one of which is the boom of the different economic sectors of America – including real estate. As an entrepreneur who made billions in real estate market, President Donald Trump, together with the current administration, claim the credit on this pleasant economic growth spurt. Is this true? How much of this economic increase can be attributed to the current administration? Is the real estate boom really because of the Trump administration or is this a case of claiming where credit isn’t due?

In his campaign, the President laid many goals that he wanted to achieve during his reign, one of which is the Rebuild America Plan that aimed to spend $1 trillion to rebuild U.S. infrastructure. This proposal has undoubtedly spurred a spike in the real estate market due to increased construction. The building of commercial and industrial properties did not only create jobs but also increased investments. Movers and builders, like piano movers Denver is an example of those that benefit from the real estate boom. Any business boom can be seen in parasite type of industries like secure paper shredding and other similar business related business services.

The humongous percentage growth brought about by Trump’s election in the stock market has also raised optimism among investors and consumers alike. Despite the increased mortgage, with the economy and wages picking up, prospective buyers are more secure and confident in buying.  This was translated to a 6% increase in new home sales in February.

Also, Trump administration’s more lofty goal of housing tax reduction for Americans can also help in enticing more prospective home buyers in purchasing their own properties. Lower taxes can also mean that potential buyers can save more money to pay their mortgage. Credit availability may also improve. Add this to the fact that more millennials are now looking for a home they can purchase or rent in order to assert their independence, real estate market is on the rise.

However, it should be noted that lowered tax rate may spur those hoping to buy their first homes to just consider renting due to the elimination of mortgage-related tax savings. The increased demand for homebuyers from the millennial generation will also skyrocket the price thus stymie potential buyers. This, on the other hand, will be more beneficial to landlords and renters allowing them to invest more in commercial real estate. There also is the booming market of auctions for estates. According to the top auctioneer in Springfield, MO, Foreman Auction, they say in the past year business has gone up considerably since the new administration has been in place.

The real estate is a tricky thing affected by various factors with effects that are sometimes not as clear-cut as we want them to be. With many factors affecting the rise and fall of the market, you cannot exactly pinpoint what caused it to grow and deflate. Though you cannot deny that the Trump administration played a part in the growth of the real estate growth, saying that it’s solely caused by the cunning of the current administration would be too much. It’s not simply a matter of reducing one factor in order to increase one, especially if other more complex factors come into play.

How Government Regulations Affect the Trucking Industry

posted in: Economy | 0

The shift in the government administration has led to many changes in the country’s economic and industrial situations. Not that I’m surprised. The President, from the get-go, is a business-oriented individual. His predilection with trade comes with no surprise new regulations that are focused on, and I quote, “Rebuilding the country’s crumbling Infrastructure” and by making businesses as easy as possible. Among those that are affected by these mandates is the Transportation Industry. This affects not just carriers, shippers and truck drivers alike but also the consumers. Though the changes may be drastic, it doesn’t necessarily mean that the effect will be negative, however, it is apparent that the Trucking Industry is about to face some major shift. Also if you own a trucking company it’s probably a given now that you are going to need to keep a lawyer on retainer as there are more and more regulations being placed on the industry every year.

For one, the new administration’s trillion-dollar Infrastructure Program has led to the increase in the number of delivery trucks needed to move supplies, equipment and other materials around the country.  However, on the negative side, the trucking industry is facing a major decrease in the number of eligible truckers due to the Entry Level Driver Training Rules. This rule, as proposed by the Federal Motor Carrier Safety Administration (FCMSA), aims to increase the number of training hours for truck drivers. Minimum of 10-hour training on a driving range and an unspecified number of time on a public road is among the new requirements proposed by FCMSA last year.

Another rule that is making waves in the Trucking Industry is the Greenhouse Gas Rules. This new mandate issued by the Environmental Protection Agency and the National Highway Traffic Safety Administration ensures the reduction of carbon emissions through three phases of new greenhouse standards. Though the reduction of carbon emissions had environmentalists nodding in agreement, the costs and the economic impact brought about by the rule had carriers and owners grimacing. In order to achieve this gas regulation and the standard set by EPA, suitable technologies are needed. The cost of achieving that emission standard is not necessarily cheap so carriers and owners should expect a temporary hike in the tractor and trailer price.  To compensate for these added costs, EPA suggests companies to make use of fuel saving. A great way to achieve this by is employing companies engaged in fuel distribution like Fort Worth diesel fuel distributor. This is a reputable fuel distributor company that makes use of Fuel Delivery Optimization Software to determine the lowest Cost per Delivered Gallon.

The third regulation that is setting a new trend in the trucking industry is the implementation of the Electronic Log Device (ELD) mandate. This mandate is one of those that I consider troublesome at first but beneficial on the long run. The implementation of ELD allows for the accurate recording of driver logs (hours on duty, hours-of-service rules, days on duty, speed, location) and easy but accurate transfer HOS records to roadside inspectors either through email, USB or Bluetooth connection. The setback in the rule though is the fact that ELD equipment can be quite expensive, however, if you think about the reduction in the amount time in filling in paperwork and the actual costs of logbooks and filing for RODS, the mandate, in the long run is more beneficial.