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Articles by Matthew Gilligan

Trump aftermath - what will it be?

AUTHOR: Matthew Gilligan

POSTED: 14 November 2016

What does a man with $1 billion of property do when he becomes president and finds himself in control of the money supply, influencing credit conditions and the quantum of the government's fiscal spend as stimulus? The sceptic in me offers the following prediction.

We know that if you give Americans credit to spend, they dive in head-first. When you loosen lending rules on housing, it's no different. Therefore, if the person who owns $1 billion of property can influence the supply of money and loosen credit, thereby inflating their $1 billion to $2 billion, do you think he might be tempted?

In my opinion, it's a no-brainer. Trump is going to try and inflate America through its woes, and he'll get popular doing it. Not only will he make billions through real estate inflation, the Americans who participate will all make money while the bubble builds, and they'll love it.

Of course it will be a giant bubble which will explode at the end, and the inflationary period will cause high interest rates. He is already talking about public spending programmes and reducing tax rates to 15% for fiscal stimulus. Think of it this way. If your household decided to spend more, and your income decreased (from gathering less taxes), what would happen to your household cash flow?

It will be interesting to see whether Trump shows restraint in spending, or whether he takes America donkey-deep further into debt while he inflates property values and the Trump empire.

I can only see inflation and higher interest rates from a Trump presidency. It's lucky I still own some US properties!

(I recently talked to Stuff about the Auckland property market and why investors need to exercise some caution – you can read the article here.)

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Hi Salesh, I just wanted to send you an email on behalf of GRA to say how fantastic we have found your company to date. As you know, Ben and I joined GRA a couple of months ago and have just found you so amazingly helpful in getting our new property set up correctly and sorted out. We have what I would consider a rather complicated structure as a result and it’s a fantastic feeling to know that we are getting everything done in the best way possible. We have just had approval to put a minor dwelling on the property which will make a massive difference in terms of cash flow and obviously value, something we would never have even thought of without GRA and which we are very excited about. During the buying process we attended a seminar with Matthew and from the outset thought he was fab. We therein signed up for property school and found this nothing short of fantastic. The content was relevant, up to date and comprehensive, but more importantly it was taught in a way that we could actually understand and really get value out of. I wanted to mention also, that everybody GRA have recommended to us has been just so efficient and absolute masters at what they do. A wonderful network of people that we feel very lucky to now be able to call on. From Kris Pederson and Bryan Rist who put our mortgage together to the insurance guys they then referred us to, I’m super impressed. Within GRA, Ellery has probably turned things around for us faster than I’ve ever known before, something which we appreciated so very much when it came to crunch time. She’s always a pleasure to deal with and again, we’re stoked. We’ve just settled on the property today and are about to go and get the keys. I’m pretty pumped and hence this email is probably rather excitable. So, a massive thank you to you Salesh, the partners for such a fabulous 6 weeks at property school and everyone at GRA for their help. May this be the start of our property empire. Thanks again, - A & B - July 2015

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