You may have noticed, in the news, recently that the housing market seems to be making a rebound from the crash of 2007 and 2009. Those interested in a Futuristic Retirement Income may want to pay particularly close attention to the housing market in their area.
Rental housing can be a very lucrative and, if managed properly, a truly passive income for people with some modest means. We are not talking about current millionaires; instead we are talking about a few thousand dollars here. While the new home market seems to be moving forward for many younger and more experienced buyers, the lower priced homes is ever so more important for the hard working, people with lower incomes. Some of these renters will be older and some will be younger.
Considering the more recent national activities, there will be more and more people in need of rental housing. Much of this housing will possibly require “section 8” housing assistance. There is nothing wrong with this label, in fact there is something very right about it.
Why Section 8?
For years, I was under the assumption that those who were receiving “Section 8” assistance were the societal “riff-raff”. In fact, thousands of those receiving this government assistance are hardworking, responsible, families. Their lot in life is such that they have found themselves in a position where this assistance can help them out of the hole they were in. This program is, in fact, as help up until these families become self-sufficient.
Where do we start?
There are several options available. We can watch the local papers for foreclosure sales and auctions. Don’t be overly anxious to buy the first house you see. You can contact your local Real Estate Broker about what might be available. If you are active in the community, do you know a broker or sales person? You can look for land contract, or contract of deed, home sales in the paper.
Check the home carefully. Use an inspector in an attempt to know you are purchasing a sound investment. Be certain you know all of the costs, such as heating, water and sewage, before you determine your monthly expenses. Know the competitive rental rates in the area. Anticipate a maintenance cost so you will have the funds available. Consider the cost of a property manager so you are not involved in the daily operations.
If you move into the rental market, you may want to consider investment in the stocks of the housing type of stocks. For Example:
– USG – Drywall
– Mohawk Carpet
– Wells Fargo Mortgages
– Acme Brick
– Benjamin Moore Paint
We hope you do take a serious look at the housing market. Because of all of the foreclosures in the past 4 years, there are millions of bargains available for people who need a place to live. You have an ability to help them out while, at the same time, helping yourself out for your Futuristic Retirement Income.
Bea & Terry Reeves
Ps, we hope you enjoyed this post and, if so please click the g+ above.