Welcome to Week 14 – More Reasons for Investing in Rental Real Estate
First, Current Demographic Trends strongly Favor Real Estate Investing
The Great Recession changed the American Dream. The loss of equity, and the need for career mobility pulled homeownership off of many bucket lists. Populations are declining in rust belt states and increasing in the south, including Florida. (We’ll talk lot more about Florida in the coming months.)
According to the U.S. Census Bureau, the seasonally adjusted national homeownership rate sat at 65.4% in 1996, rising to 69.4% in 2004, and then fell back to 65.3% 2012. Obviously, more and more people are choosing to rent rather than buy. 34.6% of the population require a home to rent. Many will rent their entire lives. Attitudes toward home ownership have changed, and continue changing for more than a third of the population – either by choice or out of necessity.
The truth is, All the Cool Kids Are Investing
An article in the October 2013 issue of The Atlantic titled “Why Wall Street Loves Houses Again,” sums up the opportunity by highlighting the Blackstone Group’s massive investment in single family housing with this quote:
“…the firm sees a new, untapped market that it believes can serve a growing group of renters who, thanks to tightening credit standards, can no longer afford the down payment to buy a home, or have been unable to convince a bank to give them a mortgage, or have simply soured on the idea of homeownership. Since the crisis, Gray says the number of single-family homes being rented has increased from 11 million to 14 million. …the downturn created an opportunity to create a business … and in doing so we could do something for tenants that never existed before… Wouldn’t somebody pay for that experience?”
The answer is yes, somebody would, and many people are paying for that experience. Chris and his clients are achieving predictable, repeatable, and sustainable rates of return on their real estate investments – making their real estate w00k for them, and not the other way around.
Next week, we’ll dig deeper into Chris’s personal philosophy, and hear from an old friend!
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