Tariff Hits me Harder than I Originally Thought

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Yes, I’m still playing Fortnite! 🙂

So, I own a small rental business with 11 units in total. Years pass, my tax were low when I bought it, when the economy went well, the appraisal on the buildings have gone up, therefore taxes and insurance went way up.

Trump went on and increase the standard deduction way up, so that would keep people who are renting to continue to rent. No problem there for me as I own multi-family homes.

But then, he decides to raises tariff. I agree the political stand.

Reality: If an item at lowes were $1 a year ago, it’s now $1.5 or more expensive. I thought they only imposed 15% taxes on Chinese made product.

Reality 2: There is no more cheap labor. The quality of work is the same or even worse. For instance, I prefer hispanic people to work on my roof. I couldn’t find those guys. If I were to hire an american contractor, they 5x the price. What the heck is going on???!!!

Reality 3: Okay, the severe shortage in manly job causing the wages for these jobs to go way up. A year ago I could hire a handyman for $10-15, now $40-120/hr??What???!!! In the meanwhile, wage for my tenants restaurant worker, cashier, students job, etc is stagnant. That means I can’t raise rent. My profit is being squeezed super hard.

The bottom line, I own a small rental business, the taxes decrease or the tariff hasn’t help me. In reality, it hurts.

 

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As I play more video games, I have a feeling that I don’t want to take on any job responsibility beside my main job, maybe I should sell my properties, take the profit and take advantage of this pullback market to invest hahah.

 

Recent buy:

F has been hit hard by Chinese. Yes, The Chinese only loyal to their own Communist Government. So, when the US hit them with the tariff, they actually stopped buying American cars… yerks!!

**I increasingly don’t like F as much as GM, The Ford family controls the company still with their specialty shares, for that, it’d probably takes another 3 generations before they would sell all of their stakes or become less relevant in the company decision making. The other advantage is it’s pulled back big so I bought a few shares for my Roth IRA account. 🙂 I might plunge in more once the price is settle down a little bit more. I have a feeling the Chinese won’t budge in the new Trump’s threat of more tariff.

FB has been down quite a bit, I might take a plunger for a few shares as they’re quite profitable.

 

1 Comment

  1. But then, he decides to raises tariff. I agree the political stand.

    Reality: 15-25% tariffs imposed. US companies are using this as to raise prices a little – think price gouging. More tariffs may be forthcoming.

    Reality 2: Unemployment rates are at historic lows and large companies are boosting wages to levels that small companies can’t match – nor do small ones have the capacity to absorb higher costs.

    Reality 3: Relax … Trump economic policies are based on the trickle down theory. Once the wealthy get their share some of the benefits will accrue to you. (if the theory works …)

    The bottom line: You’re like the farmers as they generally continue to support his war on China even though their livelihood is at risk. My opinion is it’s the wrong approach to the right battle.

    Good luck!

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