I just read a report by Morgan Stanley that said multi-family housing is expected to see a multi-million dollar boost because of all the foreclosed upon homeowners that have lost their homes and are now forced to be in the rental market. These people are likely going to pay rent over the next 5 years as they repair their credit. Total rental payments would be approximately $72 billion according to Morgan Stanley.
Since 2007, there have been 8.9 million homes have been lost to foreclosure, with more expected. On top of that, about 7.5 million households are delinquent on their mortgage or in the process of foreclosure.
Foreclosures are expected to chip away at the home ownership rate. The home ownership rate is expected to fall in the coming years to 60 percent. Most recently, the home ownership rate is 65% according to the Census Bureau. This is down from its peak of 69%.
With all of the above numbers, now may be the time to examine your own numbers. Maybe now is the time for you to become a landlord, whether it means buying a single family house, duplex or multi-family. With interest rates historically low, there is great opportunity. Trust me…it is not easy to qualify for an investment property. We can direct you to a lender and / or financial planner who can help you with that decision. It is a personal decision but one that may lead to your own financial security.
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