The L.A. Times reported in the story Tuesday March 1st, 2016 that “Fewer Starter Homes Being Built.” In their story they point out that more developers than ever are building for affluent baby boomers which makes it much tougher for millennials to buy their first home. This seems to be the first time in history that this event is taking place. In the past 40% of new homes were entry level and now it is less than 20%.
In an article in the Los Angeles Times January 23, 2016 the story stated that the state has posted huge job gains. It went on to say that 60,400 jobs were added in December which was the largest single months gain in the last 3 years.
~~Let’s take a fresh look at your goals for next year. Most of us start with the question, “What’s your families worth?” This year I want you to start with, “What’s your family worth?” Do you see the subtle difference?
~~Almost risk free is a bold statement. I say this while comparing real estate investing to stock market investing which will probably get me in hot water with stock brokers!
I doubt the debate about what is a better long term investment, real estate or stocks will ever be over, but I wanted to point out the reasons for my bold statement.
In my opinion real estate takes a big hit because a lot of real estate is bought to provide personal residences for us and when things go wrong in our lives the home with the big mortgage is the first thing to suffer.
~~Can finding out there is a severe housing shortage be good news? It sure can if you’re an investor in apartment buildings and that shortage has a huge positive impact on your income and property values!
There was a story in the August 23rd issue of “The Economist” that talked extensively about this crisis in many of the major cities in the country. According to the story the Los Angeles area is particularly hard hit. We have attached a link to this story: