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How the Current Market Affects what the Average Person Should be Doing in Real Estate | #shorts


Transcript

Ironically, we're in a really weird time right now where they are deliberately trying to raise interest rates to keep house prices from going up, but what happens then is it makes it harder to build new property and it makes harder for people to buy property. So where do all those people go?

They go rent because they can't build a new property and they can't go and buy something, so they go and rent. Well, we've already got housing deficit in America, a really bad one, which is why rents are going up so much. So now we've got this increased problem. The government is trying to slow down real estate prices and other prices from going up by raising interest rates, but what the effect it's having is it's driving rents higher and higher and higher, so who wins in that situation?

Who wins when the rents are going up dramatically and people can't buy as much, flippers don't win because you can't sell a house when you're flipping houses as much, but when you own rental property and you have a fixed mortgage that does not change and your rents go up by 10%, 20% per year, it's the landlords, it's the rental property owners that are getting wealthier and wealthier and wealthier.