Tags: Fettke | housing | rebound | sharply

Real Wealth Network's Fettke to Newsmax TV: Housing Will Snap Back

By    |   Wednesday, 19 February 2014 07:03 PM

Winter storms across much of the country are taking a toll on the housing industry, but the market is poised to recover vigorously when weather improves, says Kathy Fettke, CEO of Real Wealth Network, a real estate investment club.

"Absolutely, we're going to see a bounce back," she told John Bachman on "America's Forum" on Newsmax TV.

"When the Midwest and the rest of the country thaw out, we're going to see those builders jumping in. We're going to see some really big numbers and a lot of builder confidence."

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And Fettke doesn't think housing will slow late in the year like it did last year.

Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000

"We have a population in the U.S. that's growing by 4.5 million ever year, so that basically means we need about 2 million new homes every year to keep up with demand and the decay of old homes," she said. "We're not even close to that. We're hoping to build 1 million homes this year, maybe 1.2 million."

Fettke says a lot of people are shocked by the need for 2 million homes, because there was such a large inventory surplus during the last six years.

"But, remember, building came to a stop, so it's going to take a while for that to get started again and catch up with where we left off," she said. "There's really an inventory shortage now, and that's what the big news story is."

So where are the biggest housing shortages?

"Where the jobs are," Fettke said. "As a real estate investor, we show our investors how to follow the jobs, because the jobs attract people, and people want to live indoors. So just look that up. That's what we spend most of our time doing — looking where the jobs are going."

Job growth is strong in Texas, Ohio and Pennsylvania, she says. All three states are benefiting from the booming oil industry.

Jobs are going to "a lot of the more affordable places in the U.S., where there's a business-friendly environment and a low-tax basis," Fettke said. "That's where the demand for housing is."

On the issue of debt, Fettke recommends taking it only if you have a sure means to pay it back. "For example, if you're going to buy a home, and the mortgage is pretty much what it costs to rent, then you might as well buy," she said. That's "because it's better in 30 years that you're going to have that paid off."

On the other hand, "if you're going to take on debt that you can't pay back, whether it's a home, a business, or just speculation, . . . that's what got us in trouble to begin with," Fettke said.

"We've got to start rethinking debt. Debt can make you really wealthy when you do it right, but you've got to have a plan and not just a lot of hope."

Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000

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Winter storms across much of the country are taking a toll on the housing industry, but the market is poised to recover vigorously when weather improves, says Kathy Fettke, CEO of Real Wealth Network, a real estate investment club.
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2014-03-19
Wednesday, 19 February 2014 07:03 PM
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