Income Growth and Real Estate in Oldham County KY
Sluggish,Economic growth, although still lethargic, indicates more jobs and greater earnings creation. But as with many economic factors, you will find distinct versions as to exactly where the incomes are increasing and not increasing. The loose monetary policy has resulted in very low interest rates with practically no return on cash sitting in the bank. That is the downside of low interest rates. Buying a home in Oldham County Ky with interest rates so low is great, but the interest rates kill peoples savings.
Almost 5 million more jobs from the low point a couple of years ago have led to growth in small wage and benefit payouts to workers. But on a per worker basis, the wage development has trailed behind inflation in recent years. The payroll tax rate will rise back to 6.2% in 2013 (from this year’s 4.2%) so the net wage development will probably be zero next year. The rise in the payroll tax rate is to make sure Social Security remains stable. This means Oldham County Real Estate and Real Estate in Louisville Ky will probably remain flat next year.
The earnings from small businesses has been increasing, that is great news for small and mid-sized corporations. However, the lack of a steady personal income stream from those businesses is stopping many business owners from borrowing money to expand or to get a mortgage. This lack of income is another reason Oldham County Ky Real Estate will be flat..
From corporations in and out of Oldham County, there has been a strong rebound in corporate earnings, thereby leading to a steadily higher dividend payout. An additional surge in the fourth quarter of this year is predicted as many companies are paying out early and bigger amounts ahead of a higher dividend tax rate next year.
Because the unemployment filings are slowly coming down, although job growth is rising very slowly, total benefits as unemployment insurance has been quickly falling, although they still remain about double the pre-recession levels.
The one area where income growth has shot up solidly in the past 6 years is in rental income. Because the rental population in Oldham County increased, first as home prices became unaffordable during the late bubble years in 2006, and then from the housing market crash, the owners of Oldham County rental property who are positioned to receive rental income have done fairly well.