The updated Forbes Rich List does not make good reading for president Donald Trump with his net wealth estimated to have fallen from $3.7 billion 12 months ago down to $3.1 billion. This takes him from number 156 on the list to number 248 in the rankings of the richest people in America. So, why has Donald Trump’s wealth taken such a hit?
New York City real estate
The New York City real estate market is proving to be particularly difficult just now hence an estimated $400 million reduction in Donald Trump’s New York City real estate assets. There are concerns that the market is “topping out” and could start to fall in the short to medium term. This has prompted several prominent real estate investors to sit on the side lines and monitor the situation for the moment. It is also interesting to see a lack of so-called trophy real estate asset sales which is often an indicator that the top end of the market is stalling.
Golf assets
It will be particularly disappointing for Donald Trump to see a reduction in his golf assets which cover Miami, Ireland and Scotland. While his reputation, and his confrontations of late, will have no bearing on the value of his real estate assets in New York City, the same cannot be said of his golf real estate. The press has highlighted a significant backlash in recent times with golfers concerned about his various policies and many are boycotting his golf clubs. If the clubs are not as busy, income will be down, profits will be slashed and the value of the real estate assets will be impacted.
Tough times for Donald Trump
It is somewhat ironic that the president’s wealth has fallen from $3.7 billion to a $3.1 billion at a time when stock markets are hitting all-time highs. While the $600 million reduction in his wealth over the last 12 months will be disappointing, this will likely pale into insignificance when compared to the increase over the last few years. However, that will not stop the mass media from highlighting Donald Trump’s investment pain!
It is bizarre that while Donald Trump has missed many policy targets since his inauguration, stock markets are hitting all-time highs. So far he has yet to offer a crumb of assistance to the real estate sector despite suggesting significant tax changes would help investors. Whether real estate investors are simply losing faith or losing patience remains to be seen but for a man who made his fortune in real estate, surely it is time to use that experience to help the market?
Summary
There will be few tears shed upon hearing that Donald Trump’s net wealth has fallen from $3.7 billion to just $3.1 billion. This is a president who continues to polarise the US population and antagonise former overseas allies. He has always fallen back on his business and real estate investment skills as his qualification for the role of president of the USA. At the end of the day, while many will mock the$600 million reduction in his wealth he is still worth a staggering $3.1 billion according to Forbes.