Welcome to Week 13 : The Landlord Advantage
Chris understands that it is an incredible time to invest in residential real estate. Being a landlord has never been more lucrative, and with the right tools and team around you, it has never been easier to succeed. Demographics, societal norms, individual expectations, and just plain necessity have come together to create a tremendous opportunity.
That’s right, he’s talking about Millennials.
82 million Millennials were born between the early 80’s and the early 2000’s. The crash set them back five to ten years, but they are going to want a place of their own – any day now. In many places, the trend is already happening.
Since 2007, more and more young people are choosing to live at home. In addition, the number of unmarried couples has risen and the birthrate has dropped. Economic growth will turn these trends back around. Inevitably, household formation is going to explode! And many of these families will choose to rent.
Why Rent if They Can Buy?
People rent for many reasons. Sometimes it’s a necessity, lacking the finances, credit history, or documented income needed for a mortgage. Many lost their homes in the crash, and while they position themselves to buy in the future, they rent today. And make Ideal candidates for land contract in the future!
And one of the biggest limiting factors is student loan debt. Millions of people, young and old, are saddled with student loans they may never be able to repay. This is protected debt that can’t even be discharged in a bankruptcy, and will follow many for their entire lives. Chris has strong personal opinions on this topic, but one thing is sure: many of these people will rent for the rest of their lives.
And then there are those who simply don’t want the responsibility of home ownership – they’re happy to pay a premium if they do not have to be responsible for long term upkeep and care. It is easier and more affordable to rent in an urban environment versus buying. The aspiration to live in a city for many young people overrides the desire to own. Some Empty Nesters prefer the freedom to be able to travel on their schedule and terms. Being tied to a home can be seen to limit personal freedom.
Don’t miss next week, when we’ll be sharing more reasons for investing in real estate!
For a free copy of the full book, A Real Estate Investor’s Guide to Profitability, email FreeBook@ROOSTRealEstateCo.com and we will send you one. Or download a free e-book version here: MakeRealEstateWork.com/free-book