This is Mark Warner with propertymortgageinvestment.com.  I wanted to comment on an article that I read recently in Business Week.  The date is February 27-March 4, 2012.  It was a very enlightening article about housing’s latest hurtle: too much student debt, and it talks about a woman who has a PHD in pharmacy who earns $125,000 a year but yet has $110,000 in student debt.  She’s been told that she cannot qualify for a home loan because of the weight of that debt load from her student loans.

Too Much Student Loan Debt

It’s also recorded in here that education debt passed credit card debt in the United States for the first time ever.  That debt seems to be getting bigger and bigger because of so many people going back to improve their education, which is great, but the debt is a growing drag on the housing recovery keeping first time home buyers on the sidelines.  It quotes a statistic by the Federal Reserve that says only 9% of the 29-34 year olds got a first time mortgage from 2009 to 2011 compared to 17% ten years earlier.  That’s almost a 50% decline in first time home buyers.  What this means is that first time home buyers who are not coming into the marketplace are stalling those who want to move up to bigger homes and you need the first leg of the stool in order for the second home buyers to move up to bigger homes to satisfy what their needs are.

Staying With Parents

The student loan debt that is out there is creating some significant problems and the people who are moving out of their parents homes in that age group, the 25-34 year age group, has gone up to almost 6 million Americans from 4.7 million in 2007.  When they move out they want to rent rather than buy.  What does all this mean?  What it means is this is a tremendous opportunity for real estate investors to go out and buy properties where these people who are very educated, who will want to live on a property other than an apartment complex, and be able to have a home of their own that they would rent and then potentially someday down the line buy from you at an inflated price once the recover happens and their incomes go up.  Again, what this means is a huge pool of people out there who would love to own a home but can’t because of the mortgage problems because of their student debts making for a tremendous opportunity for real estate investors to buy, to have those properties rented, and to make really good money especially in today’s prices of real estate.  It’s time to get out there, real estate investors, and snap up some of these properties that are available in the market place at depressed prices with tremendous interest rates that are available in the market today.  This is Mark Warner with propertymortgageinvestmen.com.

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