If you follow economic news at all, you’ve taken note of the changing conditions of the American housing economy in the last few years. First, high demand, low supply, and cheap debt fueled an extraordinary (and unhealthy) price surge. In response, the Federal Reserve ratcheted up interest rates to cool an overheated economy in the wake of pandemic-related disruptions
In years prior, economic conditions supported a vast proliferation of real estate investment. Individual investors to multinational corporations scooped up properties across the country for cheap. The returns were fantastic. But in my mind, those days were decidedly over.
When my guest today, Michael Farnsworth, discussed his novel concept of real estate investment, I was all ears. Do many of the real estate investment rules-of-thumb still function in a world of 7%+ mortgage rates and all-time high prices? Is now really the time to start a real estate investment portfolio? Is this even the time to buy a personal residence? And when it comes to short-term rentals, what are the ethical considerations for local economies and community fabric? We cover all this and more in today’s episode.
Continue reading “A Unique Form of Real Estate Investment in a Tough Housing Economy (with Michael Farnsworth)”