Outlook on the Real Estate Market (Ep370)

Outlook on the Real Estate Market (Ep370)

We experienced an unprecedented drop in GDP in 2020 and record unemployment numbers. And yet, the real estate and stock markets seem to be doing fine. So, how do we make sense of this discrepancy? What is the economic outlook for 2021 and beyond? And is now a good time to invest in short-term rental properties?

Jason Hartman is the creator of The Empowered Investor and host of the Creating Wealth Show. He has spent the last 17 years helping people achieve financial freedom through real estate investing. Jason has been involved in thousands of real estate transactions and owned income properties of his own in 11 US states. He is also the author of the eBook Pandemic Investing: How to Turn Fear Into Profit.

On this episode of Get Paid for Your Pad, Jason joins me to share his outlook on the global economy, discussing why the real estate and stock markets are booming despite record unemployment. He describes how STR investors can benefit from what he calls inflation-induced debt destruction, explaining why right now IS a good time to invest in real estate and when a mortgage is not a liability—but part of your asset. Listen in for Jason’s prediction around the future of the housing market and get his advice on aligning your interests with ‘the powers that be’ by investing in STR income properties!

Click on the video below to watch and listen to this podcast episode:

Topics Covered

Jason’s insight on what is happening in the global economy

  • Record drop in GDP and unprecedented unemployment
  • Governments creating money = markets booming

How Jason thinks about the uneven economic recovery

  • Service industries hit hard, information jobs doing well
  • Wider gap between rich and poor (bad for society)

How we can benefit from inflation-induced debt destruction

  • Take advantage of 30-year, low fixed-rate mortgages
  • Pay back with cheaper money in future due to inflation

What makes now a good time to invest in the STR market

  • Drive-to markets with low density thriving in pandemic
  • Linear and hybrid markets safer bets than cyclical

When a mortgage is not a liability but part of your asset

  • 30 years to pay off at artificially-low fixed rate
  • Create wealth over time as value of USD drops

Jason’s prediction around the future of the housing market

  • Mortgage rates will eventually HAVE to go up
  • Supply constrained more and more
  • People will stay put or keep properties as rentals
  • New supply will have to be built

How governments are likely to respond to ongoing unemployment

  • Expansion of rental housing assistance programs
  • Push to universal basic income (control spending)

Jason’s advice for short-term rental real estate investors

  • Align interests with governments and central banks
  • Income properties most proven asset class in world

Connect with Jason

Empowered Investor

Pandemic Investing

Creating Wealth Show

Resources

STR Legends Mastermind

Cantillion Effect

Eric Moeller

Section 8

Andrew Yang

1984 by George Orwell

Email jasper@getpaidforyourpad.com

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