Hollywood, CA

Wednesday, June 22, 2011

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Steve Dexter, co-author of the updated real estate classic, Buy and Hold Forever: How to Build Wealth for the 21st Century, puts out a weekly newsletter and his latest missive discusses the coming post-recession real estate boom. Back at home after driving across the country from Oklahoma, Dexter is an extremely successful real estate investor writes and lectures about the real estate industry. The original Buy and Hold book, a huge bestseller written by the late David Schumacher, was also an inspiration to Dexter in the guiding him along the path to successful investing and management of his various properties.



Here is Steve Dexter's June 22, 2011 News You Can Use article, in which he concludes, "I can't wait for the recovery."



In these times of tremendous uncertainty, we need to know what the world will look like years from now. I hate to think that the depressing headline will shape our world now and forever. Is it true that tough times never last, but tough people do? IBIS World outlines the top ten sectors will hire the most from now till 2016 and the list may surprise you. Here are five of them:



1. Environmental preservation Increasing government regulations will keep the focus on environmental preservation, benefiting businesses in the sustainable building material manufacturing and remediation and environmental cleanup services industries. IBIS World estimates that jobs within these industries will grow 19.3 percent and 6.3 percent per year, respectively, by 2016.



2. Construction. With economic improvement will come a rebound in the housing market, which will benefit companies involved in multifamily homebuilding, millwork and prefabricated housing? IBIS World expects jobs within these industries to grow annually at 10.9 percent, 6.2 percent and 6.1 percent, respectively, by 2016.



3. Automotive. This sector was hit hard during the recession, but as consumer confidence climbs so will car sales. Higher automotive demand will benefit used car dealers and auto manufacturers. IBIS World expects annual employment growth of 8.8 percent and 1.5 percent in these industries, respectively, by 2016. Auto manufacturing is not expected to grow as quickly as the other industries listed due to a high level of outsourcing in recent history. However, domestic firms are starting to move some of their manufacturing functions back to the United States. After years of outsourcing, this shift could entirely restructure the recovering industry.

4. Real estate. There will be a renewed post-recession interest in real estate as business picks up and companies need appraisal and risk management services. Real estate asset management and consulting and real estate appraisal firms are expected to beef up personnel to accommodate growth, increasing employee numbers at 6.2 percent and 5.6 percent per year, respectively, by 2016.

5. Insurance. To hedge risk exposure, insurers are increasingly outsourcing risk management functions as well. In turn, third-party administrators and insurance claim firms will have to bolster personnel. Employment in this industry is set to grow 5.7 percent annually to 2016.

Look at number five-REAL ESTATE. Median house price charts show that California's house prices tripled in the 1970's, doubled in the 80's and doubled again the 90's and early 2000's. We are about halfway through the approximately 5 million foreclosures nationwide so most experts are putting any real estate recovery off till 2015. I think it will be a bit sooner for Orange County and Los Angeles County.

In Orange County, twenty eight residential developments are currently under construction and rented are on their way up. One developer said, "We believe the apartment business is set to explode, with steadily rising rents and occupancy that will justify new construction."

John Burns' real estate forecast shows rents growing 4.5% annually on average through 2015. The report notes that "Wall Street and pension fund consensus, at least for apartments in good locations in coastal cities, seems to be that 25%-plus rent growth over the next three years can easily occur." I know I am raising rents on some houses that I have been holding back; I also lowered rents on some these last few years when economic conditions dictated.

All in all, I increased rents about $800.00 in the last five years...not bad considering the tremendous job losses Southern California has suffered. What saved me was the location and types of the rental property I bought. Always bought in high demand areas, close to job centers and highways. Three bedroom and two bath houses with two car garages and larger yards.

I can't wait for the recovery to take hold. When inflationary pressures mount and more jobs are created, guess which way my rents are headed?

Don't you think that real estate's days are numbered; the epitaph for Southern California has been written before.

Buy and Hold Forever: How to Build Wealth for the 21st Century" is available at local book stores, Amazon.com or from the authors at www.schumacherenterprises.com and www.stevedexter.net.

For media interviews with Steve Dexter contact Promotion in Motion at 323-461-3921 or brad@promotioninmotion.net,

DAVID SCHUMACHER, PhD, was an investor, magazine columnist and college instructor in the field of real estate. One of America's premier experts, he was also a multimillionaire property owner. He parlayed a modest investment into property holdings worth $20 million, including houses, condos and magnificent oceanfront apartment complexes in Southern California. He also authored The Buy & Hold Real Estate Strategy and Buy & Hold: 7 Steps to a Real Estate Fortune.

www.schumacherenterprises.com

STEVE DEXTER is the president of National Capital Funding, based in Laguna Beach, California, and an expert commentator for CNN/Money, CBS Radio and Fox TV. He is the author of Real Estate Debt Can Make You Rich and Beat the Banks: How to Prosper from the Rising Wave of Bank Foreclosures. He teaches at several colleges in Southern California and is a guest instructor at Harvard Business School, Harvard Law School and their Graduate School of Design

www.stevedexter.net

Brad Butler

Promotion In Motion

Hollywood, CA

323-461-3921

First Url: Steve Deter's Official Website

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