I distinctly remember the day in 2007 when the Dow got to its all-time high of near 14,000. It was far too inflated. My company was one of the main traders in collateralized mortgage backed securities, one of the main culprits in cutting that 14,000 mark in half by spring of 2009. Because of that knowledge with those investments, I was able to steer my clients into what safe havens were left after the housing aftermath. It was a very stressful time for Financial Advisors and investors, alike.
While I'm no longer in the business, I still love tracking economic trends. The consensus is that the next economic bubble will be involving student loans. Since 2005, there have been significant factors that point to this oncoming crisis.
- The college lending market is now larger than credit card and car loan debt.
- The delinquency rate has increased 47%.
- 2005: 12 million had at least 2 student loans. 2013: 26 million have at least 2 student loans.
- 2005: average student debt $17,000. 2012: average student debt: $27,000.
- Consumers with over $100,000 in that time period has quadrupled.
That, coupled with more strict lending practices, will make home buying for new buyers that much harder. Even in that environment if one could qualify, it may not make fiscal sense to buy, making renters more plentiful and more long-term.
So this is me putting on my Financial Advisor hat. If you can, go buy property. Particularly in Fort Thomas, where values have been increasing. Besides owning Bowman's Framing, Ken Bowman is a Realtor with Huff.
We'll be spotlighting some of his properties on FTM. Give Ken a call. Today's listing is 57 Altamont. At 109,000 it's the ideal investment property to capitalize on this next bubble.