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Long-term rent trend on the hockeystick...

GSE Reform Could Have Dire Unintended Consequences for Renters

Renters face a long-term and growing affordability crisis. The demand for rental housing has skyrocketed and production has failed to keep up. As a result rents have climbed 4 percent this year while middle class wages have stalled and now one of every four renters spends more than half their monthly income on housing. Rents are projected to increase by at least another 4.6 percent next year and 4 percent in both 2014 and 2015.

This reality is supported by the 80,000 pound federal gorrilla... "skate to where the puck is going"! When the housing market (home owners) are subsidized, landlords rake in the benefits!

This is the trade of the century;
1) Residential rental property (the ultimate yield-producing hard assets,)
2) Acquired at depressed low prices (likely never to be lower again,)
3) After 20 years of rent suppression, with a reversal of financial forces,
4) Maximum leveraged (in decaying U.S. dollar currency,)
5) Leveraged at lifetime low interest rates,
6) Artificially supported by market distorting regulation!

Get 'em while they last!
Dave Donhoff
Leverage Planner
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