It may be the worst of times for millions of underwater homeowners, and for anyone trying to sell a property. Even luxury homes are seeing price declines.
But for investors in rental properties it’s very close to the best of times.
That shouldn’t be a surprise. Just as pundits predicted, the housing crisis has caused many people to choose renting over owning their own home.
These include:
· The millions who have lost their homes to foreclosure.
· Many afraid to buy in a market that hasn’t bottomed out.
· Others having a hard time meeting stricter lender regulations.
And even twenty-something’s beginning their first jobs and moving out of their parents’ homes, are, by and large, choosing to rent.
At the same time, fewer rental buildings have been built since the bubble burst. According to Tony Downs writing in the National Real Estate Investor, “From 1997 to 2006, multifamily housing construction units clustered around 342.000 new units per year, but then plunged by 66% to only 110,000 units in 2010.”
It’s no surprise that, as demand continues to outpace supply, the vacancy rate is down nationwide to 5.2%. And in the DC/NOVA area it’s less than 3%. As a result, rents continue to rise.
And as more professionals find work in our area, they, too will need places to live. With lower prices and rising rents the right purchase could bring a good return on your investment. All of which makes it the best of times to be a landlord.
If you’re thinking about buying a property to use as a rental property, be sure to choose your realtor carefully. You want someone who understands the rental market and who specializes in investment properties.
And now, for some tips from a highly successful father and son team who have done well investing in foreclosures. Click on the link below to learn the strategies that have helped them succeed over the decades.
Great blog! thanks for taking time to discuss this, I really appreciate your blog, useful and it's also help for those who interested like me. thanks for sharing.
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Thanks Reandeb! Do you work with foreign investors? If so how do foreign governments tax investments made by foreigners in real estate in the US? Is it just treated as normal income in the home country?
ReplyDeleteIn mid 2007, the bubble burst as the sub-prime market fell apart. As a result, housing prices have fallen and it's been more difficult for consumers to obtain mortgage loans. Particularly hard hit by the declining housing market are areas like California and Florida.
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