If you don’t have a passing familiarity with the phrase “passive income,” let’s remedy that. Passive income can be described as money you receive without trading it straight across for time spent working. A good example would be dividends paid on stock owned. A better example, and the one we’re talking about here, is property that you own and rent out, such as apartments, condos, duplexes, and – our personal favorite – single family residential homes.
As a landlord, we like it when more people rent, right? Correct! Additional people clamoring for rental properties falls neatly within the scope of the Law of Supply and Demand, which makes rental rates go up and income property owners wealthier in the form of passive income.
We mention this topic now because the United States is in the midst of a housing upheaval as the continuing foreclosure crisis forces more homeowners to become renters. Home ownership included 69% of the population in 2004. By 2015 that number is expected to dwindle to 64%, with rentals rising from just under 32% to 36%. Each percentage point correlates to about 1.3 million households, or about 10 million people.
That’s a bunch of people entering the rental market in the next few years.
Think it might be a good time to get serious about investing in income producing property and grabbing some of that passive income for yourself? Better do it quickly because there are lots of good deals to be had – now. Our professional investment counselors can get you started with a phone call at 714-820-4200.
The Creating Wealth Team
Flickr / turkeychik
