Mr. Trump shrugged off concerns that a crisis in U.S. subprime mortgage lending, which caters to poor credit risks, would spread to the wider property market, including Mr. Trump's luxury buildings.
"I don't see the subprime problems affecting the higher-end stuff," he said. In fact, he is advising investors that there are now great deals in buying subprime mortgages at a discount and repossessed houses at low prices.
Mr. Trump, 60, said that as he got older, he became more conservative in his borrowing. "I'm the most underleveraged now than I've ever been in my life. I almost feel uncomfortable."
While he would not disclose his debt load, he said it was far below proportional levels of 1992, when his much smaller holdings were carrying $9-billion (U.S.) in debt, including $900-million personally guaranteed by him.
As values plummeted, he became dramatically overleveraged. He denied reports that he was bailed out by his wealthy family, insisting that, while his family provided verbal support, he escaped ruin through the patience of his banks.
Mr. Trump said that his current low-debt portfolio represents a bet that the market will remain somewhat soft for some time. If he is wrong, and the market is about to roll higher, it would be better to have more leverage on his books.
"I think I'm in great shape because I think the market is a little unsettling, I think the war in Iraq is a total catastrophe, I think it's been handled horribly by the President and lot of crazy things can happen."
For the moment, he said, conditions vary widely from city to city. New York and Los Angeles are very strong, he said, while Chicago is "okay," and San Francisco joins Toronto in the weaker category.
He said that two years ago, when the market was at an all-time high, he was telling people not to buy real estate. "Now I'm telling them to do it."
theglobeandmail.com
Toronto real estate. MISTER TRUMP IS COMING TO TORONTO!
![Toronto real estate. MISTER TRUMP IS COMING TO TORONTO!]()
Reviewed by citra
Published :
Rating : 4.5
Published :
Rating : 4.5