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Rental Housing Trends: Good News for Investors

The fallout continues from the recent foreclosure crisis that saw record numbers of American homeowners forced to relinquish their houses. This massive collapse of the housing industry created nearly unprecedented opportunities for virtually anyone to get started investing in rental real estate. With low prices on foreclosed houses and a rising demand for rental housing, there’s almost never been a better time to implement Jason Hartman’s strategies for creating independent wealth through buying rental income properties.

US Census Bureau statistics reveal that the period between 2004 and 2011 saw an eight-year rise both in the number of renter households and the housing rental rate. These figures are accompanied by a decline in the rental vacancy rate – all favorable trends for rental investors.

In some areas of the country, almost one-fifth of new renters are former homeowners who will find it difficult if not impossible to return to homeownership. Likewise, many rental households are unlikely to be able to buy a house due to financial difficulties. Even if household members are employed, they may not be able to qualify for loans or cover a down payment and other costs.

A third group of renters is young adults, professionals between the ages of 20 and 29 who may be launching careers and have no interest in homeownership. Although this group of renters is largely attracted to apartment living, a growing number are choosing to rent houses in markets where high vacancy rates in single family houses may make rental costs comparable to higher end apartments.

Another factor favorable to rental property investors is the steady increase in rents in markets large and small. A large tenant pool relatively to available housing ensures a steady rental income stream. Turnover rates remain low since for many renters homeownership is not a viable option.

Housing market indicators suggest that sales may be rebounding. But the aftermath of the foreclosure crisis means that many distressed houses remain on the market for low prices. This means that retirees and those planning for retirement from the public sector can start a real estate investing career with a relatively small initial outlay

The low cost of houses available for purchase, combined with the large, and increasing, pool of renters, means that virtually anyone seeking financial independence can begin a real estate investing enterprise. A relatively small initial investment in as many properties as you can afford has the potential to create stable, long term invome from assets that only appreciate in value.

With mortgage payments and some other expenditures offset by rents paid by tenants, this kind of investment creates a stable, log-term income stream. As Jason Hartman points out, smart real estate investing puts you in charge of your financial future. Thanks to a robust rental market that shows no signs of a decline, there may be no better time to take that step.

The Heroic Investing Team


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