This is big news - President Trump on Friday signed two executive orders designed to weaken, or replace financial regulations.
Doing so, However, would return our country to a less regulated pre-financial crisis and exposing investors and Americans to the same risks in 2007, 2008 and 2009.
There are two regulations under attack - Dodd-Frank Wall Street Reform and the Consumer Protection Act of 2010.
Dodd-Frank, a set of regulations was signed into law in response to the financial crisis designed to limit risks and protect consumers. Basically looking out for the little guy.
The CFPB (Consumer Financial Protection Bureau) was established through Dodd-Frank, describes itself as "a U.S. government agency that makes sure banks, lenders and other financial companies treat everyday Americans fairly. It helps protects consumers from predatory schemes in credit cards, mortgages and student loans.
What if CFPB lost its power? Well, More mortgages could be written, delinquencies would increase, homeowners would probably use too much leverage with risky financial instruments no one truly understood. Short term would boost the economy, long term would cause the economy to crash as it did in 2008.
Some proponents of less regulation, who feel less government restrictions will inevitably lead to higher revenue and earnings, believe there are dangers that should be acknowledged. We could be pushing ourselves toward another financial mania-which would certainly not be helpful for investors, consumers or banks.
My advice-Buy Real Estate now and sell in 3 to 4 years!
Instant gratification has never translated to long-term stability!
Harry S. Berry
Harry Berry Realty, Inc
I believe that BREXIT (Britian’s vote to discriminate) will have a long-term impact on the economy. Pushing up the U.S. dollar and sending down mortgage rates will flood the real estate market with investors as a safe haven. Demand for Florida real estate could rise.
Global corporations could show additional interest in U.S. real estate as they see the U.K. as a less certain place to invest their money.
We know that a rise in the dollar will hurt U.S. exports, and mortgage rates will drop possibly hitting new record lows. If you’re a borrower, don’t wait to lock your rate. Do it now! I am sure this won’t last long. Let me give you one more piece of advice…. if you like a home, don’t kill the deal over a $2,000-$3,000 price difference between the yourself and the seller. When rates come down, home prices go up!
I also believe that Europeans and South Americans who may have looked to London to invest will alternatively turn their sights to U.S. residential real estate. The British economy will take a hard hit, and fewer Brits will now be able to buy in the U.S.
As far as the home-mortgage refinancing which started out a little slow earlier this year, I believe that this will give lower rate-refinancing a new life. Maybe there’s another mini-refinance mortgage boom coming!
These are some of the short term results. In the long run though, the vote could cause job loss, income loss, and loss of consumer confidence. This is the unavoidable consequence of voting against your own interests.
Harry S. Berry
Hollywood is the next big thing in Florida real estate.
Founded in 1925, the city continued to silently climb up the rank in terms of popularity and magnitude. It is the twelfth largest city in Florida, and it's now on its way to becoming even larger.
The primary reason for Hollywood's recent growth is the explosive real estate market in that area. This growth can be seen in two ways:
As years will pass by, the real estate growth in the city will continue to branch out of the larger trends and follow its own path.
In some ways, it has already begun.
So why didn't it happen sooner? The reason is simple. Hollywood's fate has always been connected to the two cities between which it lies - Fort Lauderdale and , of course, Miami. Over the years, these cities have claimed the lion's share of the housing market, but that's going to change.
People who don't want to spend more on a worthless location in a noisy Miami environment continue to flock to Hollywood for better pricing, affordable housing, and more importantly, peace of mind. Hollywood is the future.
Then there is the beach.
The beach is the heart and soul of Florida. It's also this city's identity - always has been, always will be. That's why it's the other Hollywood, and its pride is the award-winning Blue Wave beach.
The Hollywood Broadwalk is an American icon. Considered to be one of the top 10 nostalgic promenades, it's perfect for long walks or a run along the beach as the sun rises in the background. Surrounded by shops, hotels, restaurants, and clubs, it is the perfect microcosm of the Hollywood lifestyle.
However, when we look past beyond the romanticism associated with Hollywood beaches, we see that this city has a much more practical value - the real estate value.
As tourists continue to pour in, captivated by the blue waves and breathtaking sunrises, a network of hotels continues to emerge. A prime example of this is Margaritaville's Hollywood Beach Resort. Sprawled out on a six-acre stretch of land and occupying 450 acres of the beach front, it is the next big thing.
The interest n Hollywood as the place to be is not just superficial. The excitement continues to seep into the housing market. Hollywood is witnessing a stunning growth in condos, buildings, and single-family residences as more and more people continue to buy, sell, and rent housing units.
With more then 4,900 condo units in the plans, the Hollywood-Hallandale Beach market is second only to Miami. One of the prominent examples includes the Oceanbleau tower. Set to open next year, it has 48 units starting at $1.6 million. Projects such as these are changing the landscape of the condo market.
The housing market in general, however, shows positive signs of growth and an enormous future potential. For instance, in just one year, the home values have increased around 13% which amounts to a whopping 46.1% increase over the past five years.
With housing demands skyrocketing, Hollywood is the perfect place to be!
-Harry S. Berry