Ready to Start, But.... one big concern/question

[Christopher Petersen]

Books and Blogs, Videos, Podcasts and Newsletters, I've been studying, reading and learning. I really want to get involved in Real Estate Investing with Rental Homes first, after a few, add a couple vacation properties, then may a few commercial units. Though, I have one question that has been on the top of my list. 

Will the rental market decline in the near future with the passing of the Baby Boomer generation? 

Think about this. Baby Boomer are getting up in their years, many are down sizing, moving in with family and even passing on. All of these houses are or will soon be entering the market. With an increase in home/apartment construction to accommodate the even larger generation, the Millennials, there will be a huge surplus of both homes and rental units on the market. This will drive prices down, both ACV and Rents. 

It seems like I'm always a day late to most parties and just don't want to jump into a new career/venture only to find in the next 10 years, all my investments are diluted due to the increase in inventory. 

Any comments?

One of the many supporting articles linked.Baby Boomer Housing Bust

[Irina Belkofer]

Originally posted by @Dennis M.:

@Chris T.topher Petersen

Yep people are getting older so yeah ,you better not try . Too risky

 LOL

All people will need to live somewhere. If you choose the right location where the population is not declining - it will be enough for your life time.

Besides, the correction of the market is good for you as the real estate investor: you'll buy next rentals much cheaper than now....so your ROI will be higher.

The rentals bought in 2011-13 had ROI=30-35%, the very same rentals now might get 20-22%.

Yes, when economy sinks - the rents will go down, the vacancies go up etc

But you will buy more rentals with less money and they will give you the returns as well.

You're overthinking this, man.....just do something and you'll see how it's working.

It's not like you're investing all your money in one business: keep working, build your portfolio and then you'll see more opportunities.