Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.

Posted over 12 years ago

Urgent Action Required

The current financial situation is one where credit based income property buyers have exceedingly low prices, combined with exceedingly low interest rates, and a looming boom of new renters.  This window of opportunity will not last indefinitely. Once the Federal Reserve is forced to act against inflation by raising interest rates, it will quickly spike mortgage rates and collapse the affordability of real estate.


This will have the effect of placing downward pressure on prices, which will increase the capitalization rate for income properties.  Unfortunately, credit-based investors will not benefit from this changed marketplace since the high interest expense may not be fully covered by the rent revenue from tenants.  In this way, the upcoming marketplace will be one where cash buyers hold all of the power.


Seize your opportunity to acquire prudent income property with leverage at historic rates of affordability before it vanishes.  It is very likely that the current rates of total affordability will not occur again within our lifetimes, as they represent a combination of market corrections and manipulations that cannot persist indefinitely.  By taking immediate, positive action it will allow you to capitalize on the prevailing market trends as they propel you to wealth. (Top image: Flickr | 401(K) 2013)


The JasonHartman.com Team

"The Complete Solution for Income Property Investors"


Comments