Rental Values Expected To Double In 14 - 20 Years!

I have a rental in Valencia, over in the Westridge community. My tenants, knock on wood, are marvelous! I definitely think now is a great time for people to invest anywhere in Santa Clarita Valley and hold it as income property. When you can purchase a little 2 + 2 for 125k that is freeway close and has a 2 car garage? And, the rent can cover the expenses? Now, that's a great rental!

Lawrence Yun is chief economist of the National Association of Realtors. He always has a 1/2 page blurb in our Realtor magazine. Last night I cut out one that was right on target for would-be investors....to get them off the fence.

Whether you are investing in stocks/bonds/mutual funds, or Real Estate....it's for the long term, right?

Now everything will go up, yes. Well, except a fixed mortgage!

From my N.A.R. economist pal: "Rents rose at a better than 3 percent annualized rate in the third quarter of 2011, government data shows, and private data sources imply even faster rent growth.  And, there is no reason to believe this rent growth will cool, given the favorable demographics of a rising number of young adults over the next 20 years, a high number of owners of foreclosed homes who can't buy in the near term, and the low construction rate of apartments. If annual rent gains stay near 3.5%, rents will double in 20 years. If they reach 5 %, rent doubling would occur in 14 years."

I do feel that when the families whom have been displaced by foreclosure are able to start buying again, we will see some income properties make an adjustment in their monthly rents charged.....but, I do believe that Yun is pretty right on about the doubling of the rent values in my lifetime! And, a fixed mortgage is just that, FIXED.