Real Estate Investor Magazine South Africa Dec/Jan 2016/17 | Page 17

In contrast to 12 years ago though, there are now
many more residence and citizenship–by–investment
programs available to choose from worldwide. More
and more governments are embracing these programs
as a means to stimulate economic development and
growth, and there are a growing number of wealthy
and talented individuals looking to diversify their
citizenship portfolios to give themselves and their
families greater international opportunity, freedom
and security.
“Governments are recognizing the significant
benefits of attracting global citizens who can
make an exceptional contribution to their own
economic development and advancement. Besides
the substantial initial investment, these individuals
bring proven business success, world-class skills
and international experience, valuable networks and
contacts that can benefit the country and its citizens
enormously,” explains Major.
Johnson retorts, ‘I believe that many of the more
than 60 million that voted Trump, like myself, voted
for him in spite of the bad. Even if he doesn’t succeed
in reforming the tax code or codifying school choice,
hopefully his win will inspire others to push for
the highest office, renouncing the existing political
machine and forging their own new path. In that way,
his election is already a success, showing that such a
thing is possible.’
At this stage it is definitely not clear what the
impact will be for South Africa and its trades with the
US. Trump is measured more by what he does than
what he says and that remains to be seen in the short
term.

Why real estate is so great

The election of Donald Trump as the 45th President
of the United States marked a major turning point in
the history of America. His election, however, was no
accident. By almost any measure, Donald J. Trump
is an American success story. How did he achieve his
lofty goals? Through investing in US real estate.
As you may know, Donald Trump isn’t a politician.
He is a businessman and a real estate investor. He
doesn’t need the money as most US politicians (and
for that matter most world politicians) do. He doesn’t
need the power. Frankly more power is held by the
wealthy in the US than by the politicians. He really
just wants to get America back on the right track.
How does Donald Trump define “the right track?”
That is really the important question. The answer is, he
wants to encourage an economic system that rewards
people for taking action on the knowledge they have.
He wants to put an end to the idea of people relying
on the government to take care of them. Honestly,
when you think about it, relying on an all-powerful
www.reimag.co.za

government for all your wants and needs is the same
as being in prison.
Donald Trump believes in opportunity.
Opportunities like the US housing market.
Opportunities that present themselves to people every
day in America. Opportunities that people who take
action benefit and profit from. From opportunity,
you get benefits and wealth. You have an opportunity
sitting right in front of you. It involves US Real
Estate. Sound familiar?

“Get going. Move forward.
Aim High. Plan a takeoff.
Don’t just sit on the runway
and hope someone will
come along and push the
airplane. It simply won’t
happen. Change your
attitude and gain some
altitude. Believe me, you’ll
love it up here.”
– DONALD J TRUMP
The housing market in the U.S. has changed
considerably in the last few years and it’s largely
defined at the local level. A key point to remember
when acquiring houses for cash flow is to buy in areas
where people are moving. Not where they are leaving.
This is probably the most important thing to consider
when acquiring houses in the U.S. that’s why we are
so sensitive about where we buy, manage, and sell to
investors. That’s that kind of knowledge that Trump
used to make his fortune.
According to Dent, the Fed is ready to hike again
so what might happen this time? 

Be ready for what
the Fed is about to do and look out for opportunities
of the decade it could be right around the corner.
Whatever the Fed may or may not do, it doesn’t
really matter. Overreaction to volatility in shortterm real estate investment is not going to effect your
investments over the long term.

RESOURCES
Buy Cash Flow Properties, Investomedia, Henley and
Partners, Dent research, Global Citizen program
Index, Rodney Johnson, Economy and Markets
DEC/JAN 2016 SA Real Estate Investor

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