US Property Government Housing Scheme – US REAL ESTATE TV


Government Housing Scheme. Now, I just want
to touch on this very lightly. The US has an extraordinary government housing scheme.
They call it the Section 8 Housing Scheme. It operates across the US and effectively
what it is about is subsidizing home rents for people who are and for whatever reason
unable to make levels of rent for the city they live in, or they’ve recently lost their
home and so forth, it’s a very strong housing scheme. It’s recently been revamped as a
result of all the chaos over the last 2 or 3 years and the effective bankruptcy has meant
that a lot of people have had to move back into homes in the same neighborhoods that
they once lived and have their rents paid either a small percentage wise or fully by
the government. Now the effect on us as investors is that if you’re buying in a particular
city where the rental scheme works very well then it’s absolutely fantastic because what
it means effectively is you’re increasingly the poll of people to whom you can invest.
You’re able to either rent it in the open market or you’re able to rent it to the
Section 8 tenant, so if you think about it that way, a Section 8 tenant, it might sound
bad cause it’s like a government subsidy, but the government will pay you guaranteed
month after month. So, you don’t have any hassle associates when dealing with individuals.
Now, for me this is a primary factor in assessing risks as well, if the city has got a really
well run Section 8 Housing Scheme, then for me the risk goes down.

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