Make Kitco Your Homepage

Real estate bubble is about to pop, invest here for safety - Scott Rothbort

Kitco News

With housing becoming more unaffordable in certain areas, mortgage defaults will start to rise, but most of the real estate slowdown will happen in the commercial end, not for residential real estate, said Scott Rothbort, president of LakeView Asset Management.

“There will be a shakeout more on the commercial end than there is on the residential end,” Rothbort told David Lin, anchor for Kitco News.

Rothbort noted that some of the factors behind the real estate boom in the past decade are now deteriorating.

“There’s a few reasons why we’ve had a boom in real estate. One is low interest rates, the other is low input costs. The other is the great migration,” he said. “There was only a point in which people would continue to pay high income taxes and high real estate taxes in a lot of cities and states. Frankly, it gets to the point where it just doesn’t make sense to live in some of these states.”

For Rothbort’s investment recommendations, watch the video above.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.