A cornerstone of the wisdom of the Rich Dad, Poor Dad books, was real estate is a good investment because the population will always grow.

More people will need more places to live and property will be more valuable.

The turbulent economy over the recent past has taught many that always never happens.  So what if the US has a declining population?

Less people will need less places to live and property will be less valuable.

In the book, The Next 100 Years, by George Friedman he predicts a declining population in the 2030’s and 2040’s.  Venturing a hypothesis that the US will have to incentivize immigrants to come in and people will earn very high salaries because there will not be enough workers.

Friedman’s supports his theory by explaining changes in financial incentives of children over the last century.  People used to have a lot of kids because they needed them to work on the farm or in the factory, contributing income to the family.  Now kids go to school until they are about 25 years old.  The shift from income to expense gives financial reasons to have less children.  Add in the Great Recession and your birth rate plunges to historic lows.  The U S recently had the lowest birth rate in over 100 years.

When looking at a long term investment strategy, don’t bank on always.

For expert property management you can depend on, contact Sun Rock Property Management

Related posts:

1. The Effect of Record Foreclosures

In Manatee County home and condominium re-sales rose in October. However,  there’s still a debate about the housing market recovery.

According to the Florida Association of Realtors, sales of existing single-family homes in the Sarasota-Bradenton market rose nearly 50 percent in October compared to the same month a year ago. Sales of previously-owned condos also escalated.

Bargain-hunters and first-time homebuyers seeking the federal tax-credit deadline pushed the sales spike. This led to a decrease in the median sales price from a year ago.

Whether you are looking to purchase a condo on the 10th-hole in River Strand or a beautiful home in the Lakewood Ranch Country Club, prices are right for an investment in a rental property.

Contact Sun Rock Property Management for all your investment rental property management needs.

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1. Heritage Harbour – Property Management Perspective
2. No Vacancy
3. Manatee County – Property Management Perspective