Tuesday, September 30, 2014

academic Bubble Collapse and student Housing Reit Investments

Student Loans Alberta - academic Bubble Collapse and student Housing Reit Investments

It is amazing all the new types of Reit investments out there these days, especially now that the real estate shop has shown a sharp uptick from the dire days of the housing collapse in 2008. But what type of real estate should you invest in? If you invest in a Reit you could put your money into commercial real estate, high-rise buildings, residential home rentals, warehouse units, old folks homes, or even college dormitories or apartments for University students. Let's go ahead and talk about the latter we might.

Student Loans Alberta

If you're going to invest in apartments for college students then you should also be aware that the academic commercial complex bubble could someday burst. We all know that learner loans may run for a couple more years because Congress has enacted a law which disallows the raising of interest rates on those college tuition loans. However, because there is so much fallout, and a high default rate, eventually those interest rates will have to go up to meet the shop reality.

If they don't, then fewer inexpressive fellowships are going to lend money, and we won't be able to count on the taxpayer or the government to certify those loans to bail them out when they fail. If students can't keep getting loans for college tuition, then they won't be able to afford the ever-increasing cost of tuition, therefore they will not go to school, therefore there will be too many apartments available. If that happens the price will go down, and the occupancy rate will go down, and these investments will fail.

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