New money-making opportunities in real estate are just around the [tag-tec housing ]corner[/tag-tec] thanks to the problems facing affordable housing.
As we talked about in our last post these problems are getting serious for a lot of lower income Americans. Many of them can no longer pay rents which will take up to 30 percent of their income. Anything over that generally puts this group into financial [tag-ice rents ]trouble[/tag-ice].
Here’s what to expect:
Now that the Democrats are in control of the House they will release more money toward solving this problem the old fashioned governmental way. They will throw money at it.
Representative Barney Frank, incoming chairman of the House Financial Service Committee says a top priority from now on will be “getting the federal government back in the business of preserving and building affordable housing.”
The way the Democrats plan on doing that is to set aside 5 percent of the Freddie Mac and Fannie Mae profits after taxes.
Whether you agree with that politically of not, more money will be available for lower income housing. That means you can make money in two ways:
1. By building new housing
2. Converting existing housing to Section 8
Here’s more proof. Shelia Crowley, National Low Income Housing Coalition President states her group wants 100,000 new federal income housing vouchers. Plus they’re also asking for around 15 million new units to be built.
As more money is freed up for Section 8 and other housing services, more lower income citizens will be in line for housing. That’s good news for us.
(To be honest, our Section 8 property is one of my personal favorites. We get paid every month and we’ve got good tenants. Here’s a hint. Try to get your [tag-cat]Section 8[/tag-cat] inspections done in December when inspectors tend to be in better moods).