Patience for those who don’t have to pay their mortgages during the COVID-19 pandemic will end soon on June 30, unless renewed again.
Although you can never predict which course the government might take at the last minute. But at the same time, I am very worried about those small homeowners who cannot collect a cent for rent and who depend on cash flows to pay off their own mortgages.
Potentially millions of homes could just go to market as most of them have positive equity, and obviously this will be a great time to sell and take advantage of this still hot market, especially if they have to start paying off their mortgages.
However, those who sell will have to look for a place to live. They will most likely choose the rental option as re-buying can be too difficult.
So lease ownership will be a great asset to own, as the rate of return should be higher, safer, and more stable over the long term than most other investments. However, where you decide to buy a rental property will depend on your ROI.
Long Island and the NYC area in general are quite expensive at the moment, so your refund may not be what you are looking for, or it may not make financial sense.
However, for example, states such as Texas, Florida, North Carolina and others are the best places to protect rental properties.
As Ray Dalio (founder of the world’s largest hedge fund Bridgewater Associates) has repeatedly said, “money is trash,” and many people still don’t realize it or realize it until it’s too late.
What better way to place your falling paper dollars in a bank than in a rental property? Our currency may find itself at a turning point of dramatic changes as the popularity of Bitcoin and cryptocurrencies gradually grows. With inflation rising to its ugly head, it takes more dollars to pay for food and goods.
Thus, the cost of living has increased over the past year, and some say that this is temporary, while others believe it is the other way around, and that this is just the beginning. The more I read, the more I feel confident and sad at the same time that millions of rents will rise in the future after the mortgage deferral ends.
Ownership is currently 68+ percent, up from 74+ percent in 2008 due to weak mortgage requirements. At the time, if you had a pulse, you could get a mortgage with very little paperwork (called undocumented loans).
Before the spike in 2008 and the subsequent market crash, normal ownership was typically around 63 percent. In the future, there will be a return of property to more normal levels and a greater transition to rent.
However, will there be enough new inventory to sell to those who qualify as well as rent it out to meet demand? Probably not a few million; potential new customers enter the market every year.
From what I’ve read and researched, this looks grim for many who want to create home ownership by creating and accumulating their future wealth; which will be passed on to their future children and family members.
There will be many who will not be able to buy and will have to choose to rent for possibly long periods of time for the foreseeable future. The wealth gap between the haves and have-nots will widen, and it will be necessary to strategize the necessary solutions and remedies for greater prosperity.
But I believe that one way to achieve home ownership is to have deeper and deeper financial and motivational education, as well as learning how to become an entrepreneur so that you can create more than one source of income.
It will also help to develop the minds of future investors, which we hope will lead to meeting the growing demand in the face of our current housing dilemma.
re is the owner / broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 39 years of experience in the real estate industry and is a Graduate of the Realtors Institute (GRI) as well as a Certified International Real Estate Specialist (CIPS). For a “FREE” 15-minute consultation, an analysis of the value of your home, or to answer any questions or concerns you may have with it, please call the mobile phone: (516) 647-4289 or email: Phil@TurnKeyRealEstate.Com ra