Why The Coming Lifestyle Disruption Will Affect Your Future
If you are following the news you’ll notice a large amount of countries are possibly entering a recession and the U.S. economy is predicted by many to be on that path.First there will have to be losses on assets, with defaults and price discovery as we eventually see lenders tighten and make it harder to get new credit.
When this happens the markets will become more illiquid and many will be forced to liquidate cars, boats, stocks, bonds, real estate and collectibles.
In a deflationary environment those with a lot of money will wait on the sidelines for prices to keep falling so that they can get a great deal on everything including homes.
As of August 2019 we are starting to see a lot of price reductions and growing foreclosures in parts of South Minneapolis that we’ve studied online.
The U.S. economy is heading towards a perfect stork of lifestyle disruption in so many forms, let’s go over some of the more popular ones:
Student Debt Lifestyle Parents/Kids
Due to exploding debt by college students, often millennials, it’s been said that as many as 40% of all student loans will soon be in default.
This has forced many students who couldn’t get the future income they were expecting to pay off student loans.This made their monthly cash flow situation tougher and getting a home loan tougher.
Many students have been forced to live at home with mom and dad as they try to figure out how to pay the bills.This has also caused another lifestyle disruption for the parents.
Tech Layoffs
Due to technological advances and automation such as robots in factories, self-driving cars, kiosk at fast food restaurants, online shopping, many people will not see those jobs ever return and will have to gain new knowledge and skills to compete in the future.
Economic Layoffs
70% of the U.S. economy is based on consumption and expanding consumer credit.
Because we are about to enter a future of contracting credit for possibly a very long time that means demand will go away on creating more credit.
I think you will see this with college loans, auto loans and we are already seeing this with mortgages.We are lowering interest rates to try to stimulate demand, but it’s not enough.
Less demand for new credit means we need fewer paper shufflers, house showers and drivers and sales people.You will start to see a rise in layoffs as you are already and fewer people will get approved to buy a home which means even fewer buyers.We are entering the credit contraction part of the economy now.
Gig Economy
Many people will be forced to get inconsistent income and compete for hours which gig jobs like Uber, lyft, door dash, grubhub, uber eats, Airbnb, Fiverr and more.
Competition to make any money will keep people competing on price.Many aren’t getting the insurance and benefits they need to have a real monthly income.
Inflation Skyrocketing Rents
With inflation causing rents to go so high its causing multiple families or people to be roommates and change their living arrangements just to keep costs and budgets in-line.
People are renting out rooms or portions of their house by Airbnb just to survive.
Over-Leveraged/Deleverage Downgrade
Many will realize their assets were not worth what they thought and the buyer market will dry up and along with that their holding costs, vacancies, adjustable rate mortgages and negative cash flow will deplete their reserve savings and eventually they will run out of cash flow and their over-leveraged lifestyle will catch up with them.They will be forced to downgrade to a much more humble lifestyle.
Aging Demographic
Handicap Accessible Housing
You will need handles, and wider areas in the house to adjust for the wheelchair and shower may need additional bars as well as more railings in the house and preferably a house without stairs, a one-level living.
Sandwhich Generation
With agingparents and grandparents we are now reaching a time with increasing health care expenses where many families will need to live together, multi-generational, just to afford it for as long as they can before a more expensive option.
Rehab Home
I’ve had my dad live in one of these homes a couple of times in my life in golden valley, Minnesota when he is planning on staying short-term and needs help before trying to get back on to his own independent health. It’s expensive and you’ll want insurance to cover it.
Group Home
This is a situation where a nurse may be on site some of the time or nearby.A few elderly people live in the same home to keep costs down.This may be an option that’s more affordable before full assisted living.
Assisted Living
I had my dad do this years before a nursing home and in this situation the aging parent has s drive, refrigerator, his own place, and some freedom, but will need nurses and doctors to check in from time to time.
At this point the aging parent may be in a wheelchair and have more limited mobility.
Driving to different locations becomes more of a chores with the time it takes to check in and out and transport
Nursing Home
my dad was in many nursing homes for years towards the end and health declines quickly and often there is a shared room, help with eating and going to the bathroom.
This is a shock of limited mobility, getting into wheelchairs and in and out of bed.A lot of resting and sleep by this point in their life and nurses and doctors are very close to them.
This can easily cost $100,000 per year and with inflation will continue to increase.Expect a lot of ambulances and hospital visits.
Hospital/ICU
When you start having many visits to the ICU then the health is getting very serious and you have to really think about quality of time with your family, quality of life, wills, estates, etc. This can be very expensive.
Hospice
This is a final stage as you decline and start to due.If you’ve survived off of dialysis that means you stop and the end could be 1 day or 6 months and it’s meant to go out in peace.
This can be very expensive and planning for a funeral and assets in the estate will come up.
As you can see many Americans are in for one or many lifestyle disruptions. See which of the lifestyles you are heading towards and if you indenture with any of them click the link if you are either a motivated buyer or motivated seller.
As a motivated buyer you will be very motivated to work on qualifying to buy. As a motivated seller you will be very motivated to sell at a discount on price or extremely flexible terms on selling for an investor to buy.
Split Test Health Lifestyle
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