Some Things We Can Learn From Donald Trump

As one of America’s five richest real estate moguls, there’s no arguing with Donald Trump’s mastery of the real estate trade. In actual fact, despite a few financial ‘hiccups’ he has one of the most admired track records for real estate investing success.

Look closely at “the Donald’s” strategies and you will find a common thread. This is a principle so blindingly obvious, you will kick yourself if you’ve missed it.

So what is this principle and how can you profit from it?

It’s simply the unchangeable LAW OF SUPPLY AND DEMAND.

Let’s look at some examples of how property values, driven by demand vs. supply may be affected by different events:-

- Low-cost Airlines: A survey by Savills Research in 2006 found that the average price of a property located within 10 miles of an airport served by a low-cost airline is 39% higher than for properties within the same distance from an airport without a low cost carrier. Rents were also found to be 30% higher.

- Hosting the Olympics: The regeneration effect of hosting the Olympic Games has generally had a positive impact on house prices. Barcelona was the best performing host city with prices rising by 131% versus an 83% increase in Spanish house prices in the five years leading up to the 1992 Olympics.

- EU Accession: When Ireland joined the EEC in 1973, GDP per head was 63% of the EU average. By 2001 this had climbed to 126%. Over the last eight years in what has come to be known as the ‘Dublin effect’, the value of property has climbed by 196%.

- New Airports: In December 2007, the announcement of plans to build an International Airport in the Emirate of Ajman had the effect of increasing property prices by 30% virtually overnight.


Now, back to the Trump factor; some of Donald Trump’s planned future developments include,

1. Trump Ocean Club Panama City, Panama
2. Trump Ocean Resort Baja, Mexico
3. Trump Cap Cana, Dominican Republic
4. Trump International Hotel & Tower Palm Jumeriah, Dubai
5. Trump Tower New Orleans, USA
6. Trump Aberdeen, Scotland

Make a note of these locations, fellow investor, that’s what is called a clue!