Don't Be Afraid of a Little Chaos

Recent news about the US debt downgrade, the subsequent market turmoil, flow of capital into treasuries, and commitments by the Federal Reserve to more easy money are creating an unprecedented opportunity for income property investments. The stock market is becoming more volatile, and home prices are in the midst of a secondary slump. For people who own property that they are counting on to appreciate, this is highly destructive. However, for people who are purchasing property to rent out to tenants, this is the equivalent of handing out free money to investors.

Affordability is at record levels, but financing is still so tight that most people cannot take advantage of the exceptional deals. This is serving to suppress prices and is creating an expanded window of opportunity for astute investors to act. It is most certain that this window will not be open indefinitely, since continuing deficits will eventually force up yields on government debt.

This means that now is the time to step into the fray and scoop up these investment opportunities while they are available. It is only a matter of time before global economic forces close this historic windfall for investors. Borrowing costs cannot stay low indefinitely, and property prices cannot stay suppressed indefinitely. At some point, the other shoe will drop. Now is the time to take action. (Top image: Flickr | Walt Stoneburner)

The JasonHartman.com Team

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