I recently wrote a blog on how to get cash flow and growth by watching TV or reading the paper, leading to real estate wealth. These articles are the type of headlines I am referring to, from MSN Money talking about how “Big rent hikes around the corner” as more renters enter the market. Additionally, this post from CNN reports that double digit rent hikes could be coming soon.
According to MSN, “Millions of foreclosures also are adding millions of former homeowners into the competition for rental lodging. At the same time, shifting attitudes also are adding to the ranks of renters. Many Americans are concluding that homeownership is not worth it. “We’re learning from our surveys that a huge proportion of people are choosing to rent,” Alford says.
CNN reports that “The demand for rental housing has already started to increase,” said Peggy Alford, president of Rent.com. “Young people are starting to get rid of their roommates and move out of their parent’s basements.” By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.
What Rising Rental Rates Mean To Real Estate Investors
So why are these rental rates rising and how can smart real estate investors capitalize on it? For years, family member have been doubling up in homes with their adult brother, sister, parents or whoever they could find to share expenses with. These people are moving on and want to regain their independence. According to CNN Money, renters should be warned of double digit increases coming as more renters enter the marketplace.
My point is, if indeed rental rates are a rising, home prices are going to rise as rental rates rise. This means when you capitalize on todays incredible prices, with appreciation and growth around the corner, AND with rents going up, your CASH FLOW will grow exponentially. Yup, I just saw the light bulb go off in your head. Now accompany this with an investment in the best location (which we can help you find) and you are on your way to creating wealth. So keep watching and reading the headlines (ignore the negativity, negativity sells) and watch for the opportunities
If you would like to find out cutting edge information about the US Real Estate Investment market, make sure to sign up for our real estate investors dashboard report TODAY! It is free and full of great information.