Mr. Trump said he is poised to invest in depressed property as the downturn moves through individual cities. “People have been talking about the end of the cycle for 12 years, and I’m excited if it is,” he said. “I’ve always made more money in bad markets than in good markets.”
It shows what a lovely man he is, but there’s more:
Donald Trump almost lost his shirt 15 years ago when the North American real estate bubble burst. The 2007 version of that disaster will be much more benign, the real estate magnate predicts, although there is softness in some urban markets, such as Toronto and San Francisco.
“We’re talking very minor [problems]compared with the depression of the early 1990s,” Mr. Trump said yesterday in a phone interview from Los Angeles.
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.
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.”
So, I guess the idea is to do the opposite of what Donald Trump says–he was badly wrong about housing in the early 1990s and did even worse in 2007.