Is renting better than buying a house? | Is Rental Properties a good investment?

This is the part 2 video of topic: How are the current geo-politic and demographics impacting the real estate investments for rental properties? Recap: Last week, we cover the disadvantages of real estate investment and rental market. Today is focusing on the positive forces. Be sure to watch till the end to find out my perspective comparing the pros and the cons. This video doesn’t list the obvious reasons of real estate investor, but what is happening and changing in our society that impacts real estate markets. Let's get started: Wealth through real estate and the demographics: Many wealthy people were created by investing in real estate or growing more wealth through it. It generally goes up in value due to typical inflation, population growth, and its ability to generate income. As housing prices go up, more people need to rent. With 328 million people in the US, baby boomers and the millennial are the largest two group in the housing market. Baby boomers may be looking to cash out on their big houses and rent an easy small and minimal maintenance lifestyle. For millennial, because of their student debt and their mentality of un-ownership is increasingly high, rental is more likely than purchasing a house at this point. They have many bills to pay such as updating to a new phone, gaming, eating out, and student debt. The data shows there is $1.6 trillion dollars of student debt. Food deliveries was a steady increase over the years and especially with the virus now, a big kitchen that comes in a house is no longer desired. Young professionals choose to be flexible with job opportunities. Purchasing a houses to many means family but more people are having kids later now so renting is more likely. Where and what types: Investors are asking where should they buy: the city centers or suburbs? What type should they invest in? It’s more efficient to manage apartments but with the virus, there is more demand for single family homes. People may want their space to avoid crowds and start a garden for fun and food. Investors paying higher price for properties closer to inner cities before but now there is a shift to suburbs. Things to watch out for: Renters are questioning why live in an expensive and small place when they can move a little bit father out with more social distance with the virus going on. As you get in to the rental market, look into desired living style: apartment or the community or single family homes? The trend is less maintenance work and seek higher standard of living. Don't ignore this important factor. These are the top reasons why people decide to rent. Summary: Location is very important, but we all need to shift our minds. City center may not be the hot spot like it used to be. To invest in rental or not? Compare my pros and cons in both videos. If you were counting them, there may seem to be more cons, but we need more data and time to have a better answer because of the changing dynamics of our society. Market will forever be changing and it is not going to wait for you to get ready. Do as much market analysis and research before you make the decision. Short term: Buying a large apartment or multi-family is not a good idea. Lower price doesn’t mean everything. Don’t be fooled into only looking at the low price. Consider the demographics and the change in economy now so more than before and consider your ability to finance and get the return on your investment. Long term: Find a good deal and know the area well. Don’t over stretching yourself. It is not a bad idea as this could be a diversification of your investments. Let me know if you think rental is still a good investment and why in your area. Love to hear your thoughts.