Concern about future of real estate investing?
Hi BP,
I'm a new real estate investor in NY. I invest in properties in Indiana. I closed on my first rental property last month, and currently fixing up the place to hopefully rent it out soon (should be advertising soon!). Exciting, yes! But some article I read (it was just talking about how rent income was not increasing as much as expenses) made me think of future of real estate investing, and wanted to hear your opinions and perspectives about future of real estate market.
Let's face it, we are taking advantage of people who can't purchase a home to make profit for ourselves. Well, maybe some don't want to purchase, but jist of it is what I just said. Now imagine 10 years from now, or maybe 20 years... there will be robots replacing our tenants jobs... our tenants will have no job, no income, and can't afford rents, especially the ones that have lower income jobs that are easier to be replaced by robots. There will be larger gaps between the wealthy vs poor, and the wealthy ones will be able to buy nice homes. at that point, we will not be able to rent our mid tier or lower end house, and no one will be buying it. Scary thought, isn't it? Maybe it'll take more than 20 years for that to happen? maybe i'm thinking about it too pessimistically. I wanted to throw this topic out there to see what people think about. Thanks for your inputs in advance!