Wealth Creation Expert Jason Hartman Illustrates the ‘Perfect Storm’ for Property Investors

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Financing Challenges and Housing Costs Leave Renters Hurting, Investors Excited

Financing Challenges and Housing Costs Leave Renters Hurting, Investors Excited

The problem is that everyone has to live somewhere even if you can’t afford to buy a home, said Jason Hartman.

Today’s housing market may be the best of times or the worst of times, depending on your point of view. According to Jason Hartman, creator of the Complete Solution for Real Estate Investors™, if there was ever a ‘perfect storm’ for income property investors, this is it.
While 2010 Census data says 53 percent of renters are paying more than 30 percent of their income for housing— a level that the government defines as "unaffordable”—property investor conditions look better than ever.

“I can't imagine conditions lining up better than they are now,” said Jason Hartman, founder of Platinum Properties Investor Network and host of The Creating Wealth Radio Show. “For those with a little bit of cash to put down, real estate investments can be made for as little as $5,000 and are looking better than stocks, gold and currency all wrapped together.”

Many people are focused on gold as the “hot” investment but neglect to consider the fact that gold is one-dimensional and only profits from price appreciation which, to be fair, there has been a lot of lately; however, gold speculators rarely consider the costs of selling their gold around 10% loss in premiums above/below spot prices when buying then selling plus an onerous 28% capital gains tax at the federal level plus potential state taxes – it’s not nearly as good as it looks, even now. Hartman points out that rental properties offer a variety of ways to profit, one of which certainly is price appreciation, but the profit potential goes so far beyond that – think income, leverage and tax benefits.

“The problem is that everyone has to live somewhere even if you can’t afford to buy a home,” adds Hartman. Faced with the option of paying a premium for suddenly in-demand rental housing units, more families find themselves in the unhappy position of coughing up 30 percent or more of their income just to meet housing costs, which puts an even greater strain on other areas of the personal budget.

Hartman refers to housing as a “universal demand”— like food, clothing and shelter - it’s considered essential, and in some cases, necessary for survival. The bottom line is that Americans pay whatever necessary for a roof over our heads. The problem is one of dwindling income. Even though median rental rates remained stable last year at $855 per month, according to U.S. Census data, median household income fell 2.2 percent—enough to push more than half of all renters past the tipping point of housing affordability. Hartman advises investors to review Websites like Rent Range—developed by Wally Charnoff and Steve Angelis—and Zillow.com which offers rental data.

No one likes it when fellow citizens are hurting financially. However, that shouldn’t keep people from looking at the other side of the coin - investment opportunity. Creating wealth is not a zero sum game and it doesn’t automatically follow that a certain number of rental property investors must profit in proportion to the amount of housing misery suffered by renters as free markets do a good job of meeting demand.

“Investing in residential rental properties is quite likely the hottest sector going right now. This is primarily due to the continued price weakness in many areas of the country,” explains Hartman.

Jason Hartman advocates the belief that financial independence is available to everyone through the purchase of income property in prudent markets nationwide. Hartman provides embattled stock market investors with education, research, resources and technology to deal with all areas of their income property investment needs.

About Jason Hartman

Jason Hartman, CRS, GRI, CSP, AIPIS, is America’s foremost expert on long-term wealth creation through monetary policy and income property. He is the founder of Platinum Properties Investor Network, The Hartman Media Company, Open Door Auctions and The Jason Hartman Foundation. Jason is an accomplished entrepreneur, public speaker, media personality and author of 11 books.

Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing education, research, resources and technology for income property investment. His highly sought after educational events, speaking engagements and his acclaimed The Creating Wealth Show inspire and empower hundreds of thousands of people in 26 countries worldwide. For information, call 714-820-4200 or visit Jason Hartman online.


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