Zombie Family Budgets

Here is a great commentary/editorial by Hans G. Despain of Nichols College 9/16/22 from the T&G

https://drive.google.com/file/...

some scary statistics:

60% of American Workers make $37,499 or less per year

47% of American Workers make less than $27k

16% of American businesses are "Zombie" firms, meaning they are unable to service their current debt.

What does this mean for buying MultiFamily in Worcester?

****keep in mind who your tenant will be, and how they will pay their rent!!!!

If the businesses are "zombies" how many individuals are zombies as well?

If someone has lots of credit, they can buy things for a long time on credit cards and finance cars and houses.  

BUT-  at some point they simply cannot borrow anymore, or the DEBT SERVICE on their credit cards etc are too high.  They are simply done.

What triggers this demise/bankruptcy?  It is a faith that they will be able to get out from under it by getting higher wages and a better job, and that the value of their house is increasing.  WHEN this stops, they are simply done.

With all that is going on in the US economy and the world, especially INCREASED UTILITY COSTS.  The breaking point could be closer than you think for many people.

If people lose their jobs we could have even more scary things to come