FBS Rent Sense Points to Recent Fannie Mae Latest Economic Outlook as Additional Proof
3rd Quarter FBS Property Newsletter for Independent Rental Owners & Serious R.E. Investors
“ All Economic Indicators Look Good for Long Term Ownership in Certain Regions of the U.S.”
by Neil Fjellestad and Chris DeMarco
Fjellestad, Barrett & Short (FBS)
FBS has over four decades of real estate experience. This experience and expertise gives us a unique perspective which is straightforward, direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make long term ownership possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic "real estate doctrine" for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management.While the forecast for the economy is positive, the outlook for the housing market has deteriorated as housing activity lost momentum and near-term indicators only suggest minor improvement, Fannie Mae said in its latest economic outlook report.
“The August outlook supports our expectation that the economy will grow in the second half of the year at slightly above trend and push full-year growth into positive territory, albeit still weak by historical standards,” said Fannie Mae Chief Economist Doug Duncan.
But when it comes to housing’s contribution to the economy, Duncan said, “We have downgraded our outlook following the disappointing housing activity seen during the first half of the year.”
“In the first six months of the year, total sales have run below last year’s pace,” Duncan said. “Additionally, on the demand side, there appears to be a conservatism among consumers and their willingness to take on big-ticket purchases, such as homes.”
And next year does not look to be too much better. “We currently estimate that 2014 will finish lower in total sales figures than 2013 – and that 2015, while stronger than 2013 and 2014, will not be the breakout year some are expecting,” Duncan continued.
Despite housing’s lack of contribution to the overall economy, improvements in consumer spending, inventories and employment helped support an upward revision in growth expectations to approximately 3% for the second half of 2014, raising the forecast for all of 2014 by four-tenths to 1.9%.
If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.
Please shop and compare; not just price but services and expertise. We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos, apartments and commercial) in 69 zip codes throughout the region.
Our renters can view available rentals, apply and pay their rent online. In addition, professionals will give them personal attention to walk the property, attend to needed maintenance items, review leasing documents and move-in. This is modern customer service required when rent is the #1 household expense. Our independent rental owners have their own personal portal where they are kept in the loop on all financial elements of their important real estate investment. In addition, a team of professionals advise on real estate decisions while managing every detail of the rental property. Please visit us now. Our mobile version will come up if you visit us from your smart phone or pad www.fbs-pm.com