Dean Graziosi – Interest Rates are helping your Real Estate investments
I’m Dean Graziosi and I want to bring some basic Real Estate information to your attention. I believe that regardless of your profession or position there is some place in Real Estate investing for you. I want to spread the word. Here are some factors in the real estate sector to think about.
Rising Interest Rates
Multiple articles point to rising interest rates as a barrier to many who are considering a home purchase. It’s interesting that a 4% interest rate is an “emotional barrier” to many buyers. Most forget the many years of interest rates that were 50% more or higher than that and the terrible years when rates were in the double digits. I’m not complaining though, because those who do not buy will be renters.
The Market has priced out young buyers
Student debt now tops $1 billion and is growing. Many college graduates enter the job market with $50,000 to $100,000 in student loans to repay. The younger buyer is also facing uncertainty in the job market. As long as rental unit supply can keep up with demand, the younger buyers will stay out of the buying market.
Baby Boomers on Fixed Incomes
With around 10,000 baby boomers retiring every day, and few of them with any retirement savings, there will be a strong demand for rental housing affordable on social security’s meager payouts.
Hopefully you can see we’re fast becoming a “renter nation,” and these merging trends could create a perfect storm for smaller investors as well. Construction of apartment projects has begun to grow, as builders and developers see a sustained demand for rental housing and rising rents.
The smart small investor shouldn’t be discouraged by the big competition. With so many who lost homes to foreclosure now renting and the younger would-be first time home buyers expecting to rent for years, there is going to be demand for something “better” than an apartment. Single family homes and condos and lofts for rent near city centers will be prime rental investments.
As I try to spread the word with the Dean Graziosi team I hope you give real estate investing some thought. Please register to win my book on this blog and don’t forget my yearly investment property give away.