Jay's Notes: Investors have a fairly unique window right now. Many who want to buy homes cannot because of overly strict underwriting guidelines or because the economy is not strong enough. This is creating a need for quality single-family rentals for these tenants. When these buyers are able to purchase, that will probably drive phase two for increases in property values. Until then, investors are able to get higher cash returns than offered elsewhere with hard assets that will simultaneously act to preserve wealth if the economy does soften. Many that saw their retirement assets go up in smoke in 2009, are now repositioning their IRAs into cash flow real estate. Where to Invest US has a dedicated person as part of our staff to help you navigate setting up your self-directed IRA. Contact us if you would like any help with your IRA and we will be happy to do so.
U.S. home ownership rates remained
at 65.1 percent in the third quarter, holding at its lowest level since
1995, the Commerce Department reports. Some economists are blaming the
low rate on first-time home buyers being squeezed out of home ownership.
The home ownership rate peaked in 2004 at 69.4 percent. But high
unemployment and tight lending conditions is placing home ownership out
of reach to more families, Reuters reports. About 21.5 million Americans
are either unemployed or working only part-time, although desiring a
full-time job.
Also, “with the share of first-time home buyers hovering well below levels that
economists and real estate professionals consider ideal, there are
concerns the higher borrowing costs could hold the home ownership rate
near current lows,” Reuters reports.
Source: “U.S. Home Ownership Rate Holds Near 18-Year Lows,” Reuters (Nov. 5, 2013)