Back in October, I wrote a post questioning the viability of property rentals moving forward into the future. I wrote that post based on the soaring costs of insurance. The truth about property ownership is that operational costs are now exceeding capital costs in many areas of the country.
Yesterday, the Federal Reserve Chairman Powell testified before Congress and issued a whopper of a statement: “If you fast-forward 10 or 15 years, there are going to be regions of the country where you can’t get a mortgage.“
A large part of the problem are the losses insurance companies have been taking due to disasters and rising costs of property. Many insurance companies have opted out of providing coverage all together and many have lobbied to get premiums raised.
Between property taxes, insurance and maintenance costs, the costs of owning and maintaining a home are becoming unsustainable in the United States.
I have an entire strategy around what I’m doing with real estate and sadly, I can’t share that information with you because I don’t want other people beating me to the punch but I am sure the smart and savvy will figure it out eventually.
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What are your thoughts about the current conditions around real estate? Let me know in the comments below.